I am from India and as per the ground reports it is not yet clear whether the government will go ahead with the blanket ban or not. They were initially planning to introduce the bill during the budget session, but that was postponed. Media outlets are reporting that the bill may be introduced during the monsoon session (4-5 months from now), but there is no clarity.
Irrespective of whether they are going ahead with this bill or not, cryptocurrency investors have already suffered losses. When the news first came out, Bitcoin rally was about to start. A lot of Indian investors sold their coins and thereby suffered losses. Now their losses are not going to be reimbursed, even if the government announces that they will not implement the ban on cryptocurrency.
Topic: Reserve Bank of India - Most confused financial entity right now! (Read 465 times)
March 01, 2021, 04:34:33 PM
The rate at which government is turning U with cryptocurrency regulations is allarming, probably they are afraid of how bitcoin is making moves and they don't want their citizens to get quick rich and if that's the case, government are actually surrounded by shallow mind.
The same thing has happened in my country, the government want all financial institutions not to aid deposits and withdrawal into crypto exchanges.
There is always an alternative to every problem, simply use P2P.
The same thing has happened in my country, the government want all financial institutions not to aid deposits and withdrawal into crypto exchanges.
There is always an alternative to every problem, simply use P2P.
They are novice in the system of governance and are traditional. They don't understand the system and are terming it to be bubble.
You have some understanding that these decisions are fuds to my knowledge to pull price down. During the last ATH and the drop, many politicians bought and this is what may happen this time but unfortunately , the price may stay up there for long.
The price of bitcoin is high and difficult for investment, everybody including government officials want to invest that is why you get critism.
February 28, 2021, 11:01:49 PM
There is an increase in vendors who trade with physical cash in Indian platforms. They find it safer when compared to bank transfers. It is still not 100% safe, as the income tax authorities may be monitoring these P2P platforms as well. Talked to some of my friends yesterday. They were checking the possibility of traveling to the GCC nations with a tourist visa, and doing the cryptocurrency trade there.
This is a tendency that is going to keep growing whenever such restrictions are put in place, people are not going to stop doing something that is profitable and that does not harm anyone, using cash for their transactions confers them privacy but using those platforms or social media to contact their customers means that governments know where to look, I really think that people that are looking to exchange their bitcoin and other coins that way should eventually get out of those platforms in order to void detection by the authorities.I agree that they are not completely safe. But the risk is not very high. There are 10 to 15 million cryptocurrency users in India and even earlier most of the users were dependent on these P2P platforms. Even previously the government had created issues with banking bans and all, so most of the users were not using the mainstream exchanges. For the government, it is not practical to track all these millions of people, although we can't discount that possibility completely.
February 28, 2021, 09:44:48 PM
As I said governments control the fiat system so I am not surprised that they need to take all of those precautions if they still want to send or accept payments in their bank accounts, but those people can still take a step further, avoid using P2P platforms and try to connect directly to those that want to buy and sell bitcoin, and instead of using their bank accounts they can use cash, this is going to slow down their business even further but it is possible they will have to do that in order to stay afloat.
There is an increase in vendors who trade with physical cash in Indian platforms. They find it safer when compared to bank transfers. It is still not 100% safe, as the income tax authorities may be monitoring these P2P platforms as well. Talked to some of my friends yesterday. They were checking the possibility of traveling to the GCC nations with a tourist visa, and doing the cryptocurrency trade there.
February 27, 2021, 05:34:05 AM
^^^ Migrating to European countries from India is not easy. It is going to be too expensive for the vast majority of the users. The best option they got right now is to travel to the GCC nations (such as UAE and Kuwait) on a temporary visa and sell their coins there (in most of the GCC nations, there are no taxes on profit from cryptocurrency). Other options include Thailand, Hong Kong and Russia.
I am not sure if this works, but there is one thing these Indian companies can do.1- Find a legal country for operations and find a trusted person there and ask him to register the company in his/her country.
2- Keep his name for the ownership but operate from India.
3- Since you are only workers and the boss is non-Indian resident, that should solve the problems.
So basically the share in the profit can be discussed and accordingly you can sign contracts with the owner who remains only for the "name". I don't know if this is illegal but I am just thinking of the possibilities.
February 26, 2021, 10:36:27 PM
I don’t think all these countries trying to create cryptocurrency is ever going to work, the ones I have seen already were a total failure. Although I have seen the Chinese digital Yuan that was trending through out last year, but no one talks about it again, I wouldn’t be surprised if that one also turns out to be a total failure lol, that’s how it happens.
And then as for central banks that are banning Bitcoin and other cryptocurrencies, they are just making a mistake because for me I see it as a loss for them, since people will still continue to trade P2P, the only thing they are doing is to ban centralized exchanges and not really Bitcoin, because they can’t stop people from using Bitcoin.
And then as for central banks that are banning Bitcoin and other cryptocurrencies, they are just making a mistake because for me I see it as a loss for them, since people will still continue to trade P2P, the only thing they are doing is to ban centralized exchanges and not really Bitcoin, because they can’t stop people from using Bitcoin.
CBDC coins can become successful if they are easy to use. So international merchants who were using fiat currency earlier (SWIFT transfers and all) may shift to using these coins, just because they are uncomplicated. But at the same time, it will be foolish to believe that fiat currency in any format will replace decentralized cryptocurrency. Coins such as BTC and ETH are there for a reason. And their biggest advantage is that they are decentralized. Once you make them centralized, all the advantage is lost.
February 26, 2021, 04:26:58 PM
So with the new budget 2021, RBI has put forth an agenda (one more time) to ban the crypto currency across India. They won’t be allowing to use the crypto either for corporates or individual level. All the banks will be warned soon with the following guidelines.
Why confused?
Statistically they have already published such guidelines back in 2018. After this market crashed a bit and major exchanger like Zebpay was closed.
With Musk putting and publishing his actions with bitcoin (to buy Tessa with bitcoin) Indian government looks completely distorted with their decisions.
A draft of these guidelines states all the above junks.
Moreover, RBI to launch their own crypto currency which will be centralised one. So what the heck is that? Why they don’t understand we don’t want centralisation in the first place and that’s why we are using the bitcoin. LOLZ
Reference: RBI to ban crypto currency use
Most likely at a crossroads between prioritizing the elite sector's needs and wants and the common people's necessities. They wouldn't be that 'confused' if it wasn't the case. Nonetheless if I were the one handling the RBI, I'd choose the betterment of my people rather than the 1% which can safely survive and hold on their own. Why confused?
Statistically they have already published such guidelines back in 2018. After this market crashed a bit and major exchanger like Zebpay was closed.
With Musk putting and publishing his actions with bitcoin (to buy Tessa with bitcoin) Indian government looks completely distorted with their decisions.
A draft of these guidelines states all the above junks.
Moreover, RBI to launch their own crypto currency which will be centralised one. So what the heck is that? Why they don’t understand we don’t want centralisation in the first place and that’s why we are using the bitcoin. LOLZ
Reference: RBI to ban crypto currency use
February 26, 2021, 12:55:43 PM
Moreover, RBI to launch their own crypto currency which will be centralised one. So what the heck is that? Why they don’t understand we don’t want centralisation in the first place and that’s why we are using the bitcoin. LOLZ
I don’t think all these countries trying to create cryptocurrency is ever going to work, the ones I have seen already were a total failure. Although I have seen the Chinese digital Yuan that was trending through out last year, but no one talks about it again, I wouldn’t be surprised if that one also turns out to be a total failure lol, that’s how it happens.And then as for central banks that are banning Bitcoin and other cryptocurrencies, they are just making a mistake because for me I see it as a loss for them, since people will still continue to trade P2P, the only thing they are doing is to ban centralized exchanges and not really Bitcoin, because they can’t stop people from using Bitcoin.
February 24, 2021, 11:34:10 PM
As I said governments control the fiat system so I am not surprised that they need to take all of those precautions if they still want to send or accept payments in their bank accounts, but those people can still take a step further, avoid using P2P platforms and try to connect directly to those that want to buy and sell bitcoin, and instead of using their bank accounts they can use cash, this is going to slow down their business even further but it is possible they will have to do that in order to stay afloat.
There is an increase in vendors who trade with physical cash in Indian platforms. They find it safer when compared to bank transfers. It is still not 100% safe, as the income tax authorities may be monitoring these P2P platforms as well. Talked to some of my friends yesterday. They were checking the possibility of traveling to the GCC nations with a tourist visa, and doing the cryptocurrency trade there.
February 24, 2021, 11:17:10 PM
That is something they are capable to do, after all they control the fiat system so they can block bank accounts if that is what they want, however if they do this then people are simply going to move to P2P, now this is not going to be able to support the current trade levels that we see and this could decrease the price, but since governments are in such a difficult shape due to the pandemic I doubt every single one of them will decide to do something like this and many exchanges will simply move to jurisdictions that cater to them simply because the taxes the industry will bring are incredibly high, so no matter what governments do it seems they will never be able to come close to eliminate cryptocurrencies.
P2P platforms are not safe either. If you are using an Indian bank account, then it gets risky. Because the government can easily obtain transaction logs for all these accounts. I have checked a number of p2p platforms within India, and many of the traders have gone in the stealth mode. They have removed the Whatsapp numbers from their profile and have instead given the Telegram ids. And from what I have heard, the payments are being made from multiple bank accounts to prevent detection.
February 24, 2021, 02:35:43 AM
Some of the government lapdogs have now jumped into the fray. Rakesh Jhunjhunwala, regarded as one of the most well known equity investors in India have come up with a strange logic. He says that he don't like Bitcoin and therefore government should make it illegal. This Jhunjhunwala guy was earlier charged with insider trading and market manipulation, but due to his close bond with the ruling party, the investigation into these crimes were suspended.
https://economictimes.indiatimes.com/markets/stocks/news/indias-bitcoin-owners-get-sinking-feeling-as-jhunjhunwala-calls-for-its-ban/articleshow/81172933.cms
LOL. India's own Warren Buffett. Everything that the west does, we have to find a representation for that. Almost every hill-station in India will have a nickname resembling "Swiss of the East". We never want to take the initiative and actually use innovation until some precedence has been set.https://economictimes.indiatimes.com/markets/stocks/news/indias-bitcoin-owners-get-sinking-feeling-as-jhunjhunwala-calls-for-its-ban/articleshow/81172933.cms
Quote
“I think regulators should step in and ban Bitcoin. I think it’s speculation of the highest order. I will never buy Bitcoin,” Jhunjhunwala, often referred to as India’s own Warren Buffett, told US business network CNBC in an interview.
The same is happening with the talk about this legislation. Indian entrepreneurs who put their time and effort into Bitcoin related products did not do so to see this day. It is hard to fathom that a good Govt. will do this to its own citizens. If this happens only because the crypto users are small in numbers, it'll be another one of sure signs of a failing democracy and the bankruptcy of ideas within ruling establishment.
February 24, 2021, 01:15:12 AM
Some of the government lapdogs have now jumped into the fray. Rakesh Jhunjhunwala, regarded as one of the most well known equity investors in India have come up with a strange logic. He says that he don't like Bitcoin and therefore government should make it illegal. This Jhunjhunwala guy was earlier charged with insider trading and market manipulation, but due to his close bond with the ruling party, the investigation into these crimes were suspended.
https://economictimes.indiatimes.com/markets/stocks/news/indias-bitcoin-owners-get-sinking-feeling-as-jhunjhunwala-calls-for-its-ban/articleshow/81172933.cms
https://economictimes.indiatimes.com/markets/stocks/news/indias-bitcoin-owners-get-sinking-feeling-as-jhunjhunwala-calls-for-its-ban/articleshow/81172933.cms
Quote
“I think regulators should step in and ban Bitcoin. I think it’s speculation of the highest order. I will never buy Bitcoin,” Jhunjhunwala, often referred to as India’s own Warren Buffett, told US business network CNBC in an interview.
February 23, 2021, 03:22:19 AM
A few days back, there was an article in the Mint. It claims that by imposing a hefty penalty over the existing 42.7%, and then forcing existing cryptocurrency users to sell their holdings, the government is expecting a windfall. Things like these would be abhorred in democratic countries and will be termed as wealth confiscation. But in today's India, where authoritarian policies by the ruling party is gaining increasing acceptance, all this will be treated as normal. The users are divided. Some of them want to take the fight to the supreme court. Others want to migrate to other countries which don't have these sort of draconian legislations.
Migrating to countries like Malta would be the best option given how easy and excellent the laws are there regarding the use of Bitcoins and crypto in general and this is why most of the companies are registering in Malta so I hope they can find the right place once India actually implements a ban on crypto.Imposing taxes on crypto is interesting because if they are going to do so it will mean they are looking at the use of Bitcoins as legal and only then taxes can be collected on their use.
It is such a saddening thing to see a growth of a country in terms of Bitcoins and technology is being cut short because of some corrupt or uneducated leaders who I am sure don't even realize how Bitcoins work and what is blockchain technology. I have a lot of respect for Indian users and members because I work with some and they are really down to earth and work on minimum wages and work their heart out for you.
Never lose grip on keeping an eye on what your government does because power tends to extend its hand over every aspect of their citizens life.
I know for some is hard to leave the country for a whole lot of reasons but for wealthy bitcoiners that's not an option anymore.
namaste
February 23, 2021, 02:53:42 AM
^^^ Migrating to European countries from India is not easy. It is going to be too expensive for the vast majority of the users. The best option they got right now is to travel to the GCC nations (such as UAE and Kuwait) on a temporary visa and sell their coins there (in most of the GCC nations, there are no taxes on profit from cryptocurrency). Other options include Thailand, Hong Kong and Russia.
February 23, 2021, 12:26:29 AM
A few days back, there was an article in the Mint. It claims that by imposing a hefty penalty over the existing 42.7%, and then forcing existing cryptocurrency users to sell their holdings, the government is expecting a windfall. Things like these would be abhorred in democratic countries and will be termed as wealth confiscation. But in today's India, where authoritarian policies by the ruling party is gaining increasing acceptance, all this will be treated as normal. The users are divided. Some of them want to take the fight to the supreme court. Others want to migrate to other countries which don't have these sort of draconian legislations.
Migrating to countries like Malta would be the best option given how easy and excellent the laws are there regarding the use of Bitcoins and crypto in general and this is why most of the companies are registering in Malta so I hope they can find the right place once India actually implements a ban on crypto.Imposing taxes on crypto is interesting because if they are going to do so it will mean they are looking at the use of Bitcoins as legal and only then taxes can be collected on their use.
It is such a saddening thing to see a growth of a country in terms of Bitcoins and technology is being cut short because of some corrupt or uneducated leaders who I am sure don't even realize how Bitcoins work and what is blockchain technology. I have a lot of respect for Indian users and members because I work with some and they are really down to earth and work on minimum wages and work their heart out for you.
February 22, 2021, 01:01:02 AM
In India, every political decision maker have their own agenda and they want to display their power, by implementing something that will ultimately protect their position. (So they try to eliminate the competition to their national currency to gain favor from their Puppet Masters) 
There are many theories floating around right now... one theory is that the government has run out of cash and is desperately looking for new avenues. Analysts have pointed out that the proposed ban and the penalty on current Bitcoin holdings will make the government richer by around $5 billion, which is a huge amount in India. And Bitcoin community in India is numerically not significant and therefore the government doesn't feel that there will be much repercussions.
What they are planning is to impose anywhere from 30% to 60% penalty on the current Bitcoin holders (larger the holding, higher will be the penalty). On top of this penalty, income tax of up to 42.7% will apply and GST of either 18% or 28% will be applicable. In short, the Bitcoin holders will see more than 90% of their net worth vanishing in the form of penalty and taxes. This is similar to what the Cypriot government did in 2013 when they ran out of cash. They just confiscated the bank deposits and imposed a 87.5% haircut.
February 22, 2021, 12:34:41 AM
I think people must understand how politics work, before they even attempt to analyze it. Politicians are only concerned with "Power" ...so they will do anything to retain that power. (Some politicians will even murder their competition)
So now let's look at India and how the changing political decision makers are influencing the policy regarding Crypto currencies. Every time when there are a "change" .... the new person in that post are changing the policy to leave a legacy. (even if that only last 4 or 5 years whilst they are in that position)
We see this in the USA now with butt hurt Yellen, where she now wants to implement strict regulations on Crypto currencies out of revenge for the "Bitcoin Guy" who spoiled her speech on National Television.
In India, every political decision maker have their own agenda and they want to display their power, by implementing something that will ultimately protect their position. (So they try to eliminate the competition to their national currency to gain favor from their Puppet Masters)
So now let's look at India and how the changing political decision makers are influencing the policy regarding Crypto currencies. Every time when there are a "change" .... the new person in that post are changing the policy to leave a legacy. (even if that only last 4 or 5 years whilst they are in that position)
We see this in the USA now with butt hurt Yellen, where she now wants to implement strict regulations on Crypto currencies out of revenge for the "Bitcoin Guy" who spoiled her speech on National Television.
In India, every political decision maker have their own agenda and they want to display their power, by implementing something that will ultimately protect their position. (So they try to eliminate the competition to their national currency to gain favor from their Puppet Masters)
February 21, 2021, 11:07:24 PM
That is something they are capable to do, after all they control the fiat system so they can block bank accounts if that is what they want, however if they do this then people are simply going to move to P2P, now this is not going to be able to support the current trade levels that we see and this could decrease the price, but since governments are in such a difficult shape due to the pandemic I doubt every single one of them will decide to do something like this and many exchanges will simply move to jurisdictions that cater to them simply because the taxes the industry will bring are incredibly high, so no matter what governments do it seems they will never be able to come close to eliminate cryptocurrencies.
P2P platforms are not safe either. If you are using an Indian bank account, then it gets risky. Because the government can easily obtain transaction logs for all these accounts. I have checked a number of p2p platforms within India, and many of the traders have gone in the stealth mode. They have removed the Whatsapp numbers from their profile and have instead given the Telegram ids. And from what I have heard, the payments are being made from multiple bank accounts to prevent detection.
February 21, 2021, 06:02:27 PM
It is not that they do not understand this they actively refuse to accept this truth, governments do not want to accept that there is a currency out there that they can not regulate no matter what they do, but this is because as we know governments are really good at destroying anything that is centralized but they have great trouble dealing with decentralized enemies and unfortunately for them cryptocurrencies were created specifically to resist any attempt to try to censor them and the more measures they put in place the harder people will resist.
As they can't regulate it in a efficient way they try to forbid exchanges between btc and fiat maximum as possible. This way bitcoin holders will be unable to cashout their profits to local currency and consequently unable to spend their money, as very few places accept bitcoin as payment method. I can't deny it's a smart move from the government, but people can still hold their bitcoins safely for the future, that is what really matters.Unfortunatelly those who need to convert crypto to fiat frequently are prejudiced for now. P2P transactions are a possible solution, but not everyone has access to trustful dealers to trade with.
February 21, 2021, 07:31:08 AM
A few days back, there was an article in the Mint. It claims that by imposing a hefty penalty over the existing 42.7%, and then forcing existing cryptocurrency users to sell their holdings, the government is expecting a windfall. Things like these would be abhorred in democratic countries and will be termed as wealth confiscation. But in today's India, where authoritarian policies by the ruling party is gaining increasing acceptance, all this will be treated as normal. The users are divided. Some of them want to take the fight to the supreme court. Others want to migrate to other countries which don't have these sort of draconian legislations.
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