Industry Experts: The Indian Government Plan to Ban Crypto is Flawed
Based on a previous report, it was made known that the Reserve bank of India has instructed all banks from engaging in any crypto related activities within the country. All regulated and licensed financial institution in the country are required to abide by this ban.
Even at that, there have been several reports indicating that the Indian government is hell-bent on placing a blanket ban on the entire crypto industry. However, experts are saying this plan by the government is impossible.
Experts Views
Various analysts across the country seem to agree on the fact that the Indian Government cannot place a blanket ban on cryptocurrency. Each expert has given their reasons for making this claim. However, the most common reason behind the claim is that the Indian technology industry is one of the most advanced in the world. So even if such a ban exists, it won’t really matter, as there will be various ways through which the ban can be bypassed.
Based on recent reports several notable and popular market players and experts have also commented on the flaws of a blanket ban on cryptocurrencies.
A good example of this, is a statement coming from, Nischal Shetty, CEO of a cryptocurrency exchange in India, WaziX.
Shetty stated that:
“Even if the government decides to ban the possession, it will be just impossible to implement it.”
He further stated that
“Banning cryptocurrency exchanges will not eliminate private ownership of virtual currencies. Investors can store their digital assets in cloud storage facilities, individual hot wallets or physical storage devices like USB drives.”
Tanvi Ratna, a Policy Consultant for Incrypt also commented saying that:
“Once an Indian (citizen) is invested in a foreign exchange, it might become impossible for the government to trace his or her investments because most foreign exchanges also allow conversion to private coins which makes transactions untraceable.’
The Use of Virtual Private Networks
According to the CEO of a blockchain firm, Raunaq Vaisoha, even if the government decides to block access to the websites of overseas exchanges after the blanket ban, “there is still a window of opportunity for local traders and investors – the use of Virtual Private Networks.”
Going by all these comments, it is obvious that people are ready to devise ways through which they can bypass the ban.
