Cryptocurrency still under crosshair in India – Media India Group
As most cryptocurrencies reach new highs in values, valuing Bitcoin at USD 877 billion and Ethereum at USD 462 billion respectively, the governments around the world are keeping a close watch on the crypto universe. Yet, India has not yet decided its approach on the issue, building a cloud of uncertainty not only over the fate of these currencies but also the investments made by millions around the country.
Developed countries like the US, UK, European Union, Canada and Australia have legalised cryptocurrency. In the US, any entity that administers or exchanges cryptocurrency falls under money services business and is subjected to its Bank Secrecy Act which ensures they file reports with the US Treasury on transactions over USD 10,000. Like the US, Canada and Australia have legalised it and has brought it under its financial legislation. Both countries require the exchanges, buyers and sellers to keep a record of their transaction and any cryptocurrency investment is subject to taxation. The European Union has recognised cryptocurrencies as a mode of payment, however, it has taken necessary steps to inform the general populous of the hazards and risks associated with cryptocurrency.
El Salvador, a country in Central America, has declared the cryptocurrency, Bitcoin, to be a legal tender in June 2021. It has even created an app called “chivo” which lets users easily transact money. As per Salvadorian law, businesses are allowed to accept Bitcoin as a means of payment if offered by the consumer.
Why countries like India are looking to ban or regulate the currency?
While cryptocurrency does have tremendous amounts of opportunities but wrapped with the opportunities come the problems as well. Since, cryptocurrency is entirely a private entity, knowing who is buying from whom is extremely difficult. As cryptocurrency depends on blockchain technology and cryptography network it makes it extremely secure and multiple layers of privacy to the parties involved in transactions. Due to such high security and privacy, criminals and criminal organisations are much tempted to use them.
‘‘It doesn’t fall under normal monetary rules. For example, if a person is buying shares from someone, SEBI will have access to the …….