The proposed “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021,’ going to be tabled in the coming winter session of the Parliament had created a ripple effect. The panic-stricken crypto community (of over 6 million Indians) started selling their crypto assets resulted in the sudden price fluctuation and crash.’ The Government of India should seriously consider the following points before taking any drastic decision of banning several crypto currencies.
- Crypto currency is a technological innovation. So, instead of putting a blanket ban on several currencies, the Government can consider allowing certain currencies like Bitcoin, Ethereum, BAT, Cardano, HBAR, Polkadot based on the traction it gained and the real-volume of business and revenue they are generating.
- Instead of banning them, the Government should fix the capital gains tax. In that way, it will generate a sizeable income for the Government.
- The Government should appoint a Regulatory Board along the lines of SEBI (Securities Exchange Board of India) for the Cryptos like CEBI (Crypto-currency Exchange Board of India) to monitor and regulate all kinds of crypto trade happening in India.
- Government should encourage and help the global-scale projects launched in the Blockchain Space. That will fetch enormous corporate tax for the Government.
Ban or no ban, the investors need not to worry about the Government’s decision. Since, the cryptos are operated in a decentralized way, it is impossible for any one country or more than one country to stop it. So, simply they can operate the crypto account from the exchanges registered in Singapore or other European countries. Some of the India-based exchanges also have a license to operate from these countries. That means, the invested money will be safe. Nothing to worry.