Government may ban trading in bitcoin, Ripple etc – Your Money may be blocked

The government of India may ban the trading in bitcoin, ripple and other cryptocurrencies in India very soon as it states that bitcoin is not a recognized legal tender in India. This comes in the amid discussion in the Rajya Sabha, where one MP demands the government view on the legalizing the crypto currencies.

The Arun Jaitley states that the government does not want to take any substantial step before the report is being filed. He also states that he will look into the report and then issue corrective measures after a thorough understanding of the situation.  However, he again warned that dealing with virtual currencies is at one's own risk.

Which report is Arun Jaitley is talking about?

Arun Jaitley states that a committee under the Secretary, Economic Affairs Department is examining all aspects of Virtual Currencies and deciding the specific action accordingly.

Hence, once the report is finalized by the government, then we may see strict action by the government in this regard and even a complete ban is also possible.

Warning by Government

Arun Jaitley further states that since 2013, the government and the RBI maintains the same stand on bitcoin and other currencies as unlawful in India. He states that bitcoin is not a legal tender in India and hence, the government is bound to take action based on the report.

What if Government bans the trading in India?

India accounts for 11% of the total bitcoin cap and hence if the trading is banned in India, then the price of bitcoin will take a hit and every person will try to sell their bitcoin to get their money back and which may result in panic and failure of exchange to provide liquidity to all the bitcoin holders.

The situation will go out of hand and will result in mass losses to various bitcoin holders.

Government keeps an eye on all exchanges

The government even keeps an eye on all bitcoin exchanges, the Arun Jaitley states in the parliament. He states that Cryptocurrencies lacks dependence and function with anonymity within a virtual community and every trade happens through the identified 11 exchanges dealing with virtual currencies in India.

Conclusion

We advice all the bitcoin investors to be cautious before and keep themselves updated on every information.