There is a method to the madness in the way the government decides to function. It has a peculiar way of arm-twisting when it wants something done in its favour. Historically governments are known to work for their self-interests. It would be mistake to believe they work for us.
RBI’s circular basically mandated a total ban on banking services to cryptocurrency exchanges in India because these exchanges operate outside of RBI’s regulation. It cannot touch them or their operations under any of the existing laws.
The mandate has pushed us back to the pre-exchange era when P2P models worked abundantly and largely on crypto-for-cash basis.
Fact is that thousands of people from India have made a ton of money trading cryptocurrencies. It’s true that many even have profited from it over a longer time frame. Not everyone in this space enters it with legal sources of income and that a valid concern. But the political parties in India are also mostly funded via illicit sources of Income.
The Indian politico hardly makes decisions without any self-interest and one cannot help but ponder how cryptocurrency benefits politicians. It’s another way to clean your dirty money!
Under 2% of the people in India pay taxes on their income and a large majority of the country operates on cash. Cryptocurrency has been a haven for tax evaders. You cannot deny this.
Ofcourse, Indian exchanges where KYC is mandatory are not party to evasion of taxes but p2p channels have always existed where illicit money can be converted back to legally taxable income. Infact you can buy crypto with cash and with legally via exchanges. Before the FUD, Indian exchanges account for nearly 10% of the global trade, now it doesn’t even make a dent!
RBI didn’t intervene for the longest period of time and in this duration a lot of vested interests have certainly managed to keep the market unregulated to favour themselves.
It’s quite possible that RBI was forced to take this step without any due diligence as anyone looking to convert black money to taxed income would’ve done it by now.
While my opinion may seem like speculation, it is indeed based on some understanding of the how the political bureaucracy works in this country. It’s plausible that this theory may even hold some water!
Whatever maybe the case, we’re 4 days away from the next supreme court hearing. It’s mid-July and there is no sign of the initial draft on the regulations just yet.
What do you think about this and what do you expect from the regulations? Will it favour end users or the government?
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
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All the governments work for them not for the people of India. They do what good for them.
It's our bad luck that no any elected government think about us.
If India does not legalize cryptocurrency even now then it will be very sad for all of us. Everything has pros and cons but Indian government is only focusing on cons of cryptocurrency.
Lets hope for best.
BTW I just realised that you are the admin of Steem.Chat, good to see an Indian achieving such great heights..
Not possible to judge who will be favourable ahead after looking past incidents but hope is continue as i am end user.
Yes ,it is open secrat of our govt system,it never works beyond its interest .But some smart poliricians have invested vast amount of money in cryptocurrencies and have been making money too.Difference is that their money are not hard work one like us,so they are indifferent .But we have to look for upcoming days for hearing of SC.
However it is very difficult for government to track the transaction and how much profit someone is earning by crypto trading as government can't control exchanges which operates outside India. Government can categories crypto as a commodity and can regulate exchanges operating in India. Actually nobody knows in the government that how to deal with crypto trading.
these techniques, little by little, will conquer all the countries .. you just have to have patience, good luck India, Greetings from
Venezuela
lets hope from the upcoming hearing
Thanks Sir for sharing this Information I was found your account and follow you. I seen in your details that you are a Steemit witness so send me your link I will upvote you as a witness because I seen 1st time any Indian as a Steemit Witness. And now I will follow all your post.
And We all Indian are waiting for 20th July..
one more think I seen that you are active since July 2016 and I don't thinks any other Indian will on Steemit for such long time.
Thanks for your better blogs on Steemit, I will learn a lot to you.
I think the govt. can handle a substance and control transactions in India. In reality, no one in the government knows how to actually handle crypto currency trading.
really love your pastries
Government of india increasing black money transaction by Blanket Ban of banking services because they can't stop P2P or cash transaction.
Still There is no any law which can revoke cryptos transaction in india.
i think govt of India should be take some favour about cryptocurrency..
lets see what decision comes out in next hearing.
I hope everything will be good... :(