Why some people around the world want to ban cryptocurrencies
Find out why some people around the world want a ban on cryptocurrency trading, and why some governments are considering regulation.
The Reserve Bank of India (RBI) and the Finance Ministry agree that crypto transfers are bad for the country’s financial stability. Until a way to stop these transfers is found, the Indian Union government won’t be able to prevent them. There are no rules about how cryptocurrency can be used in India right now.
The recent drop in the value of cryptocurrencies has made more people aware of the risks of dealing with them. Several governments, including the government of India, have said again that only the sovereign can make money.
Some people have also heard that cryptocurrencies are used to buy and sell illegal drugs, pay for terrorist groups, and clean up dirty money.
Cryptocurrencies need to be regulated
The Financial Stability Board’s job is to ensure that all of the world’s financial systems are stable and to fix any problems that could hurt them.
Cryptocurrencies need to be regulated in some way around the world. We can’t prevent them in India unless there are regulations. If not, the only thing we can do is make them illegal in India. This was said by someone who was there and saw what was going on.
The Ministry of Finance and the Reserve Bank of India (RBI) did not answer e-mails asking what they thought. In October, the international group plans to report on this subject to the G20 finance ministers and central bank governors.
This means that we still don’t know who they are. So, FEMA sent a ‘Show Cause Notice’ to WazirX because it let crypto assets worth Rs. 2,790 crores be sent from outside the country to unknown wallets.
WazirX said on August 6 that what ED said was not true. Rajagopal Menon, the vice president of WazirX, was asked about the FSB study and how cryptocurrencies are regulated in India. He said, “It’s clear that the government has decided to deal with crypto sensibly.” The government won’t make things easier for the sector, but they won’t do anything too extreme, like outright banning it.
The SEC is already taking steps in this direction in the United States. In October, the Financial Stability Board (FSB) will write rules for regulating cryptocurrencies. This could be the first step toward regulating cryptocurrencies in a good way for all G20 countries.
Making cryptocurrency is not against the law
Menon says that making cryptocurrency is not against the law. Countries with a lot of power, like China, have tried more than once to make cryptocurrency illegal, but they have failed. He also said that drastic steps like bans and high taxes would hurt the industry and drive customers to unregulated markets.
It’s important to remember that most cryptocurrency investors store their money on exchanges. People don’t usually keep their coins. Not much of this money is used to break the law. Chainalysis came to this conclusion by taking a look at the Blockchain.
The premier cryptocurrency trading platforms like, crypto engine website make it possible for anybody to invest in cryptocurrencies. The United Nations says that 2% and 5% of cash comes from doing things against the law.
The current exchange rate is between $800 billion and $2 trillion in US dollars. Since 2009, when Bitcoin was the first cryptocurrency and others followed, there has been a lot of talk about them.
Some people, especially in developing countries, consider cryptocurrency a haven when the economy is bad. Even though cryptocurrency is often criticized for being unstable, used in shady deals, and requiring a lot of electricity to mine, this is still the case.
In September 2021, El Salvador was the first country in the world to use it as legal money. In April this year, the Central African Republic did the same thing. In some of these countries, it’s not clear what Bitcoin’s relationship is to other digital currencies, and it’s always changing.
The second country with the most people who use cryptocurrency in Ukraine. How many other countries have said they’ll back it? In some countries, it is against the law to buy or sell things with Bitcoin or other cryptocurrencies.