Here is why India should not have banned cryptocurrency trading

BuyBuyBitcoin

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Quote from: Helex on September 20, 2018, 12:28:08 AM

As most you might already know that Indian supreme bank RBI has banned banks from dealing with people who deal with cryptocurrencies.

Most people just moved on to p2p direct cash deals.

Previously, people traded on legalized exchanges and those legalized exchanges and people paid tax to Indian government.

People still deal with crypto using p2p but government stopped getting tax.

People will always move to P2P exchanges where governments ban things.

Look at file sharing, it was banned in the US when Napster was "shut down." That was 2001 and people still share files

It must be hard for the banks to tell Indians to invest in stocks with rupee's but they can't buy bitcoin. Especially when the rupee will eventually die as a currency.
https://economictimes.indiatimes.com/markets/stocks/news/market-on-track-for-worst-october-since-2008-should-you-catch-the-falling-knife/articleshow/66360642.cms

localbitcoins and hodlhodl are good exchanges for people in India. Bisq is probably too intense for some but it's the first decentralized exchange for crypto currencies makes it impossible for any government to stop buying bitcoin and altcoins. Then there is always coin mama for prepaid visa cards to buy small amounts anonymously.

Dudeperfect

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There is no existing law preventing us from using Bitcoin and the idea of banning the exchanges is not a wise decision as the government is blocking the official channels resulting in the lack of a monitoring system. Those who deal in illegal stuff will still continue to do so under the ground irrespective of the decision of the government. I have rejected multiple offers to trade Bitcoin against cash as black money holders are actively looking to park it somewhere and the government is restricting the official channels resulting in the discomfort of the rest 99% genuine users as well as the domestic crypto ecosystem.

carlisle1

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Quote from: Helex on September 20, 2018, 12:28:08 AM

As most you might already know that Indian supreme bank RBI has banned banks from dealing with people who deal with cryptocurrencies.

Most people just moved on to p2p direct cash deals.

Previously, people traded on legalized exchanges and those legalized exchanges and people paid tax to Indian government.

People still deal with crypto using p2p but government stopped getting tax.

Rural Bank of India is now neutral to cryptocurrency since the government of this country is Open for Adoptation of this currency and the technology behind this to circulate in their country,so theres nothing to be bothered these days already

Helex

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Quote from: Kemarit on September 20, 2018, 03:26:26 AM

Quote from: Helex on September 20, 2018, 12:28:08 AM

As most you might already know that Indian supreme bank RBI has banned banks from dealing with people who deal with cryptocurrencies.

Yes. This is not new to me. If you have followed the news around, this India/RBI news has been going for quite sometime now.

Quote from: Helex on September 20, 2018, 12:28:08 AM

Most people just moved on to p2p direct cash deals.

Previously, people traded on legalized exchanges and those legalized exchanges and people paid tax to Indian government.

People still deal with crypto using p2p but government stopped getting tax.

Of course, not only in India but Chinese is also doing the same. Crypto trading can't be fully stop at this point. We already build a momentum so individuals will always find a way to circumvent those bans. P2P, OTC, underground trading, using VPN's. There's a lot of ways to get around from government's regulation so its going hard for them to completely shut it down.

Yes. The more you pressure something, more it will pop-up. I hope they support us rather than going against us.

Kemarit

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Quote from: Helex on September 20, 2018, 12:28:08 AM

As most you might already know that Indian supreme bank RBI has banned banks from dealing with people who deal with cryptocurrencies.

Yes. This is not new to me. If you have followed the news around, this India/RBI news has been going for quite sometime now.

Quote from: Helex on September 20, 2018, 12:28:08 AM

Most people just moved on to p2p direct cash deals.

Previously, people traded on legalized exchanges and those legalized exchanges and people paid tax to Indian government.

People still deal with crypto using p2p but government stopped getting tax.

Of course, not only in India but Chinese is also doing the same. Crypto trading can't be fully stop at this point. We already build a momentum so individuals will always find a way to circumvent those bans. P2P, OTC, underground trading, using VPN's. There's a lot of ways to get around from government's regulation so its going hard for them to completely shut it down.

pakhitheboss

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First of all your heading is incorrect INDIA NEVER BANNED CRYPTOS.

Secondly RBI has not banned cryptos it has asked banks not to deal with Cryptocurrency exchange other wise you will not be able to transact in P2P SERVICE using your Bank account.

Third, you will still pay TAX whenever you recieve any cash into your Bank account. Do not forget money from P2P also has to credit to the Bank account.

I read somewhere in this forum that the reason for RBI taking this decision was because cryptocurrency exchanges were not transparent with their transaction details with the Bank. They suspected Money laundering was being done using these exchanges.

This is being contested in the Supreme Court by the Exchanges. So, it is better not to come into any conclusion and wait till a Verdict comes out.

John_stalk

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Quote from: Helex on September 20, 2018, 01:15:03 AM

Quote from: Pursuer on September 20, 2018, 01:08:30 AM

Quote from: Helex on September 20, 2018, 12:56:48 AM

Quote from: iram1011 on September 20, 2018, 12:37:48 AM

The RBI's blockade on cryptocurrency exchanges in India was mere a knee jerk reaction. It did create a panic when the news first came, but soon people realized about the peer to peer trading option and went all in cash transactions which turned out to be counter-productive as difficult for tax authorities to track.

But RBI is still not that concerned because the rate of cryptocurrency trading isn't that high to be alarming for the Indian economy. Also, the Supreme court is postponing the verdict because of the upcoming general election and I think a verdict is possible by the year end.

Yes and it again did create panic bit before supreme court hearing, but after hearing getting postponed again and again people are losing interest in it too.

if by panic you mean the inside India panic and price that was bitcoin's price in India then you may be correct, although I have not really checked the Indian bitcoin prices but these panics are not important because they are not affecting the rest of the market and for example price in USD is still the same and on its own trend regardless of what has been going on in a country such as India.

yes it did not affect international markets since crypto market in india is still very small.

wouldn't say so. It grew significantly since 2013. Governmental decision seems quite unreasonable, crypto had a great potential in India.

wongdeso

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Quote from: Helex on September 20, 2018, 12:28:08 AM

As most you might already know that Indian supreme bank RBI has banned banks from dealing with people who deal with cryptocurrencies.

Most people just moved on to p2p direct cash deals.

Previously, people traded on legalized exchanges and those legalized exchanges and people paid tax to Indian government.

People still deal with crypto using p2p but government stopped getting tax.

What was affected by this was the Indian crypto community, so for the global crypto community there would be no effect.
To hold this, the rights of each person are actually true, but in this case, the Indian government feels disadvantaged by taxes, indeed this case is quite difficult to be accepted by underprivileged countries, taxes above all else.

Helex

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Quote from: Pursuer on September 20, 2018, 01:08:30 AM

Quote from: Helex on September 20, 2018, 12:56:48 AM

Quote from: iram1011 on September 20, 2018, 12:37:48 AM

The RBI's blockade on cryptocurrency exchanges in India was mere a knee jerk reaction. It did create a panic when the news first came, but soon people realized about the peer to peer trading option and went all in cash transactions which turned out to be counter-productive as difficult for tax authorities to track.

But RBI is still not that concerned because the rate of cryptocurrency trading isn't that high to be alarming for the Indian economy. Also, the Supreme court is postponing the verdict because of the upcoming general election and I think a verdict is possible by the year end.

Yes and it again did create panic bit before supreme court hearing, but after hearing getting postponed again and again people are losing interest in it too.

if by panic you mean the inside India panic and price that was bitcoin's price in India then you may be correct, although I have not really checked the Indian bitcoin prices but these panics are not important because they are not affecting the rest of the market and for example price in USD is still the same and on its own trend regardless of what has been going on in a country such as India.

yes it did not affect international markets since crypto market in india is still very small.

LOVEUMUM

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That really sound bad news and a very bad move and action taking by the government but since there are alot of ideas by government of nations about bitcoin we hope with time most of them will understand and make it a point to factor bitcoin on their market. But for India very sorry for them.

Pursuer

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Quote from: Helex on September 20, 2018, 12:56:48 AM

Quote from: iram1011 on September 20, 2018, 12:37:48 AM

The RBI's blockade on cryptocurrency exchanges in India was mere a knee jerk reaction. It did create a panic when the news first came, but soon people realized about the peer to peer trading option and went all in cash transactions which turned out to be counter-productive as difficult for tax authorities to track.

But RBI is still not that concerned because the rate of cryptocurrency trading isn't that high to be alarming for the Indian economy. Also, the Supreme court is postponing the verdict because of the upcoming general election and I think a verdict is possible by the year end.

Yes and it again did create panic bit before supreme court hearing, but after hearing getting postponed again and again people are losing interest in it too.

if by panic you mean the inside India panic and price that was bitcoin's price in India then you may be correct, although I have not really checked the Indian bitcoin prices but these panics are not important because they are not affecting the rest of the market and for example price in USD is still the same and on its own trend regardless of what has been going on in a country such as India.

BlockchainGod

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I think the government made a big mistake by banning the exchange of bitcoin. The economy of India is in a complete mess now, and the government itself deprives itself of a source of income in the form of taxes on the exchange of bitcoin.

Helex

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Quote from: iram1011 on September 20, 2018, 12:37:48 AM

The RBI's blockade on cryptocurrency exchanges in India was mere a knee jerk reaction. It did create a panic when the news first came, but soon people realized about the peer to peer trading option and went all in cash transactions which turned out to be counter-productive as difficult for tax authorities to track.

But RBI is still not that concerned because the rate of cryptocurrency trading isn't that high to be alarming for the Indian economy. Also, the Supreme court is postponing the verdict because of the upcoming general election and I think a verdict is possible by the year end.

Yes and it again did create panic bit before supreme court hearing, but after hearing getting postponed again and again people are losing interest in it too.

iram1011

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The RBI's blockade on cryptocurrency exchanges in India was mere a knee jerk reaction. It did create a panic when the news first came, but soon people realized about the peer to peer trading option and went all in cash transactions which turned out to be counter-productive as difficult for tax authorities to track.

But RBI is still not that concerned because the rate of cryptocurrency trading isn't that high to be alarming for the Indian economy. Also, the Supreme court is postponing the verdict because of the upcoming general election and I think a verdict is possible by the year end.

Helex

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Activity: 232

Merit: 1

As most you might already know that Indian supreme bank RBI has banned banks from dealing with people who deal with cryptocurrencies.

Most people just moved on to p2p direct cash deals.

Previously, people traded on legalized exchanges and those legalized exchanges and people paid tax to Indian government.

People still deal with crypto using p2p but government stopped getting tax.

Topic: Here is why India should not have banned cryptocurrency trading (Read 246 times)