Government has considered regulation of cryptocurrency in budget 2018. In order to regulate cryptocurrencies like Bitcoin, Finance Minister of India, Arun Jaitley said that cryptocurrency is not a legal tender and Indian government will discourage its use.
However, the government is open to the ‘blockchain technology’ on which these cryptocurrencies work.
The government will also be planning a roadmap to put some regulation on the cryptocurrency market. The digital currency world is currently not monitored by any regulating authority. Since the past year, cryptocurrency market has gained huge numbers of investors who are willing to put some considerable amount in the sector.
Although even before the budget release, Arun Jaitley said that cryptocurrency is not a legal tender, but it is really assuring for investors that there may be a regulating authority in future that’ll add to the security of their investments.
Several banks have frozen account cryptocurrency exchanges in India, while the registrar of companies (ROC) has stopped registering companies intending to act as such exchanges.
Due to untraceable nature of cryptocurrencies like Bitcoin, it is prominent that transactions with black money can easily happen. The battle is still on while investors from Wall Street think of it as no-go, due to its dynamic nature; while some consider it a good option to make quick bucks.
With recent hacks, that happened, the investors are cautious of investing in this field and their investment getting exposed to hackers. However, the platforms try to track these kinds of hacks, but there ain’t any way to retrieve the money lost to hackers.
Yesterday, Facebook also announced that it will be banning ads that promote cryptocurrencies, initial coin offerings and binary options, saying these advertisements only deceive investors.
Some countries like Belarus have legalized transactions in crypto-currencies, part of a drive to foster private sector growth and attract foreign investment by liberalizing parts of its Soviet-style economy.
Regulating this sector, will obviously attract investors. Bitcoin, one of the most popular cryptocurrency, whose founder has not yet come in the light, had almost touched $20,000 a rise of over 1700 percent within a year.
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