In November 2016 demonetization was announced and notes of 500, 1000 became merely paper overnight. Once again in November 2021 a circular on social media indicated a possible ban on cryptocurrency? Exchanges like WazirX crashed because people started panic selling, without knowing exactly what is to come.
The notice only has mentioned ‘private’ cryptocurrency. What is that, you wonder? Many experts are considering NASDAQ definition as they do in America… that the currency which runs on blockchain and ‘traceable’ is called public cryptocurrency. For example: Bitcoin, Ethereum, etc.
Other cryptocurrencies are not traceable as they use stealth mode to avoid getting tracked. These are Monero, Zcash, etc. Some people fear that what if the government does not consider NASDAQ definition? What if they ban all cryptocurrency even though a blanket ban is not viable as so many people are invested in.
The confusion and prolonged policy indecision have caused average investors to suffer. The government had previously indicated to regulate the cryptocurrency market and not ban it entirely. But tabling a bill without public consultation has left many in doubts.
There is no way that bitcoin or any cryptocurrency will become legal tender, anytime soon. But people expect that government will allow holding crypto, make it a taxable commodity. Exchanges and jobs and investors will survive as a result. Otherwise these large companies might shift their operations to crypto friendly countries like Singapore.
The government wants to check corrupt practices by introducing the bill. Common people have invested estimated 6 lakh crore in crypto assets. So complete ban is not possible even if wanted. Even in the worst case scenario, government might provide window to sell crypto assets. Hope that they don’t make it illegal overnight!