Cryptocurrencies are being used to route money to illegitimate entities, according to several governments that have banned them, and the spread of crypto might disrupt their economic markets.
Due to its immense popularity, many governments have yet to supervise the Bitcoin sector. As a result, investors are prone to a variety of cybercrimes. One such threat is deceptive recruiting, which can cause some shareholders to lose their hard-earned money.
If the administration decides to ban online currencies, bitcoin users in India are concerned about their assets. That’s because the Cryptocurrency Act, which seeks to restrict all individual cryptos with specific exceptions to encourage the source code, has been scheduled for the Parliament’s winter session.
Three features of cryptocurrency are discussed in the proposed Bill. Initially, the government should establish CBDCs, an electronic counterpart of national currency. Furthermore, all individual crypto coins are banned. Finally, some actions must be permitted for the underlying technology to function. Yet, Bill’s description matches the February 2021 Act, which aimed to prohibit certain digital content. Crypto specialists argue that until the official Bill is introduced in Parliament, it will just be speculation.
When China outlawed cryptocurrency last year, it grabbed headlines. Still, it is only one of many nations and authorities that have mostly outright banned or severely regulated cryptocurrency in recent years.
Cryptocurrency is illegal in Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh, and China. Forty-two other countries, including Algeria, Bahrain, Bangladesh, and Bolivia, have implicitly prohibited digital currencies by limiting banks’ authority to cope with crypto or outlawing cryptocurrency exchanges, according to a 2021 summary report released in November by the Legislation Library of Congress.
In 2018, when the agency first released a study on the subject, the number of countries and authorities that have outright or tacitly outlawed cryptocurrency doubled.
Analysts and prominent industry groups warned on Wednesday that elements relating to “banning” private cryptocurrencies would have to be carefully scrutinized as the Indian government seeks to ban all individual currencies in the impending Crypto Bill 2021.
In the Winter Session of Parliament, which begins on November 29, the Bitcoin and Control of Government Online Currency Act, 2021, proposes outlawing all India’s currencies.
It does, however, permit those exclusions to encourage cryptocurrency’s core technology and use.
According to Deputy Finance Minister Subhash Chandra Garg, Cryptocurrencies do not perform and deliver services solely as currency.
When they ‘ban’ virtual assets, what specifically are they restricting? What, on the other hand, are the permitted exclusions? Do you allow cryptocurrency to be utilized as the system’s biggest exclusionary factor in payouts? What strategy do you employ to facilitate the purchase of restricted currencies for use in international transactions?” He inquired further.
The most important issue to be addressed in the current legislation is how digital currencies platforms will be allowed to produce products, utilities, and assets using the flexible advanced technologies of cryptocurrency and cryptology when it relates to its use as a monetary system, according to Garg, who led the inter-ministerial committee that drawn up the cryptocurrency bill.
According to Shivam Thakral, CEO of BuyUcoin, the crypto act should be versatile enough for new Blockchain enterprises to thrive.
Consequences in the Case of Banned Cryptocurrency:
If most governments decide to ban cryptocurrency following possibilities may occur:
1. All transactions between your account and your digital currencies will be halted.
2. You will be unable to purchase any cryptocurrency using your local cash.
3. You’re not going to be able to cash them.
Regulation of Cryptocurrency:
Regulating or managing cryptocurrencies could be a critical component of the industry’s progress and expansion. When more private and institutional investors enter the market, additional regulatory advice can help minimize speculation in crypto assets, Khanna adds if carefully targeted.
Future of Cryptocurrency:
According to experts, the world cryptocurrency industry would more than triple in value by 2030, reaching roughly $5 billion. Entrepreneurs, businesses, and organizations can’t disregard the growing wave of crypto for long, whether they want it or not.