Crypto Ban In India :
Why government wants to regulate ?
Governments around the world are eyeing Bitcoin's advance warily because it has
potential to upend the existing financial system and undermine their role in it.
Crypto's can circumvent government-imposed capital controls and its state-less nature can lead to uncontrolled outflow of currency.
Crypto ties to illegal activity. The ability to bypass existing financial infrastructure for a country is a blessing in disguise for criminals .
Government wariness about the cryptocurrency can be partly attributed to fear and partly to the lack of transparency about its ecosystem.
Cryptocurrencies do not
maintain your records. Nobody knows who the seller or the buyer is, and that is a real danger.
This anonymity can give rise to terror funding and money laundering.
Ransomware attacks on big
companies have happened where cyber criminals have demanded cryptocurrencies as ransom so that they wouldn't be identified or tracked.
You can't reverse a transaction. You can't file a complaint unlike an RBI controlled mechanism
which has ombudsman.
It's difficult to tax Bitcoin and that is a loss of revenue to the govt.
Also know more about :
India's crypto ban : What does that mean?