Monday, December 5, 2022

India Moves to Ban Bitcoin, Shuts Down Exchanges

India Moves to Ban Bitcoin, Shuts Down Exchanges

India could be on the verge of banning cryptocurrency exchanges as a government panel giving guidance on the matter has advised the Indian government to close down crypto dealers in the country.

Also read: Put a Hard Limit on Bitcoin Cash Block Times to Make It Powerful, Says Developer

Government Panel Wants Indian Authorities to Go After Crypto Dealers

ETNow has reported that a government panel advising the nation’s lawmakers on cryptocurrency-based crime has recommended they go after dealers.

This is according to quotes retrieved from various government agencies by the Economic Times.

The decision was made by the panel, in part, to curb the use of crypto and prevent criminals from facilitating illegal activities through it. However, experts seem to agree that this very action will do little to stop money laundering.
As as an alternative solution, some recommend that the government implement a more narrow policy of banning crypto exchanges done exclusively by cash.

Hesham Rehman, CEO & Co-founder, Bitxoxo, a bitcoin exchange operating in India, is someone who advocates for such an action.

Will India Follow China’s Lead in Shutting Down Cryptocurrency Exchanges?

China Cryptocurrency

If enough policy makers take the panel’s advice seriously, then we could very well see another major economy shut down cryptocurrency exchanges within its borders.

China was the first to do just that, with the government announcing in September that all exchanges were being required to shut down.

The move ended up having a huge impact on the price of Bitcoin, as it tumbled $400 in just one day.

However, as the policy relates to money-laundering prevention — it may have only made the problem more intractable for the government to handle.

The reason being is that the mandate forced traders, at least temporarily, to exchange through P2P means — making it harder for authorities to track down illegal activities.

What do you think of the panel advice regarding cryptocurrency dealers in the country? Tell us what you think.

Images via Bitcoin News Dose, Wikipedia

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