Updated: Apr 18
The toss of a Bitcoin: How crypto ban will hurt 5 mn Indians, 20K Blockchain developers
With corporations and governments around the world moving financial services to the Blockchain, India risks ceding ground to countries that have coopted cryptocurrencies instead of outlawing them.
With corporations and governments around the world moving some essential services to the Blockchain, India risks ceding ground to countries that have coopted cryptocurrencies instead of outlawing them. In February 2019, J.P. Morgan became the first U.S. bank to create and test a digital coin that is pegged to the U.S. Dollar, and representing fiat currency held in accounts operated by JPMorgan Chase N.A. Singapore is testing a system to tokenize its c ..
A decision to act against cryptocurrencies is likely to have downstream effects, destabilizing the existing infrastructure that processes and facilitates trade in digital tokens. “The move will hurt not just the exchanges. There are tens of thousands of traders who earn a living through trading in crypto assets. There are YouTubers and influencers who earn a living teaching people about digital currency and crypto trading. There are thousands of developers wh ..
‘No threat to rupee’
Bharat Sharma, HSA foresees litigation initiated by stakeholders against the proposed legislation. “The Bill does recognize concepts of digital rupee and foreign digital currency. In these cases, they are not outlawed once the Bill becomes an Act,” he says. Amit Singhania, Partner, Shardul Amarchand Mangaldas opines that the tax argument is key to understanding and regulating cryptocurrencies, irrespective of the government’s take on the committee’s repo
While the use and trade of cryptocurrencies has increased in India over the years, it still constitutes a miniscule fraction of the overall digital transactions pie. “For miners the tax issue is more significant because they would have typically made huge investments in technology and super computer infrastructure. It is unclear whether such investment in hardware will be witnessed if a ban is enforced,” he says.