No Ban, Govt Regulating Cryptocurrency to check role in

'Hawala', Terror Funding

 India has the fifth-highest rate of crypto owners at 7.3% by means of population.
 Less than 3% of Indian population invest in stock market.
 Indian’s go after Crypto because of quick gain.
 Point to note: The world’s biggest cryptocurrency, bitcoin, has gained more than 50% since start of the
year. The one year gain stands around 400%.
 One major attraction is the chance to earn high profits by investing in small amounts.
 In Wazirx one can buy crypto from 100Rs
 The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is among 26 bills
listed for introduction in the Winter Session, beginning on November 29,
 The bill seeks to “prohibit all private cryptocurrencies in India" but allows for “certain
exceptions to promote the underlying technology and its uses". It also aims to “create a
facilitative framework" for the creation of the official digital currency to be issued by the RBI.
 The government and the RBI had recently hinted about floating a strong regulatory control on
cryptocurrency to avoid money laundering and terror financing, rather than banning it
entirely.
 As a result On Wednesday, all major digital currencies saw a fall of around 15 per cent and
more with Bitcoin down by around 18.53 per cent, Ethereum fell by 15.58 per cent, and
Tether down by 18.29 per cent.
 The RBI has repeatedly reiterated its strong views against cryptocurrencies saying they pose serious
threats to the macroeconomic and financial stability of the country and also doubted the number of
investors trading on them as well as their claimed market value.
 Many foreign government is also trying to control or impose tax on crypto as they erode the tax base.
 It is worth noting that in Russia, cryptocurrencies are recognized as a type of taxable property. India
may also follows it.
 Earlier this month, US President Joe Biden also signed a new law which includes tax reporting
provisions that apply to cryptocurrencies.
 The FTS chief points out that cryptocurrency transactions are traceable and the FTS is ready
to deploy automated tracking systems to process big data volumes. “When you get into the
digital space, you still leave a trail somewhere. And it’s a matter of time before this trail is
identified,” says Daniil Egorov, head of Russia’s Federal Tax Service (FTS).
 Earlier this month, PM Modi held a meeting on cryptocurrencies, after which officials said
India won't let unregulated crypto markets become avenues for money laundering and terror
financing. Later, in a speech last week, he urged democratic nations to cooperate in
regulating private virtual currencies failing which they could land up in the "wrong hands".
Thank you