Regulation of Cryptos – No Worries for BTC and ETH Users

Regulation of Cryptos – No Worries for BTC and ETH Users

Recently, the government of India issued a notification regarding the introduction of a new bill to regulate cryptocurrencies in the country. The government will present it in the winter session of the Parliament, which is about to approach. It has been made clear that the bill’s name will be cryptocurrency and regulation of the official digital currency Bill, 2021. This bill may impose full restrictions on the use of private cryptocurrency because the geography kills boundaries of the country, and it has created a considerable amount of worry among the investors. There is a matter of worry for the cryptocurrency investors because if the Digital coins are banned in the country, they will not be able to exploit the opportunity of making huge profits from the digital coins. Therefore, the moment of cryptocurrency still is a key important thing for the investors.

However, the notification also provided a brief detail about the government’s bill in the winter session. It says that due to the worries of the Reserve bank of India, India is going to bring a new bill in the Parliament that is going to control the digital coins. Also, this initiative is taken by the government to initiate the release of its official digital currency. Therefore, the digital currency that the country is going to bring about in the winter session will be controlled and issued by the reserve bank of India. Also, the bill is about to prohibit the movement and use of private cryptocurrencies across the nation. Also, the bill has some expectations as it cannot wholly neglect the incredible underlying technology. Hence, some cryptocurrencies have the chance of remaining outside of the ban.

Difference Between Private and Public Currencies

According to different organisations’ outlooks, the currency that is not issued by the government and not regulated by the government is called the private cryptocurrency. In 2009, the finance ministry in India proposed that cryptocurrency regulation is essential and that some specific action is necessary to control the virtual currency. It also recommended that private cryptocurrencies have anything through which the government can regulate them. However, the ministry also said that anything controlled by the government is a private cryptocurrency, so it should be banned in India.

According to AI trading robot, private cryptocurrencies that the government does not control have a higher potential for inconsistency. Also, the prices of private cryptocurrencies fluctuate because of the demand and four supplies in the market and hence, they have a high degree of volatility and uncertainty. Also, it can replace the Fiat currency in the investment market and hence can pose a severe threat to the financial system of any country of the world. In an interview, the technical evangelist Sharat Chandra said that the digital currencies which are sovereign bonds would back the central government of the country. Therefore, they can also be considered public cryptocurrencies. Apart from this, he added that the digital currency that is not backed by government support or any sovereign bonds owned by the government is to be categorised under private coins.

However, even though the whole country is under the shock of new regulations by the government, there are chances that some significant cryptocurrencies may not come under the regulations of the government. If the transactions that are initiated through blocks in technology are traceable using the public ledger. We can take an example of a bitcoin moving on public leisure, and hence, its transactions can be traceable. Therefore, the government does not see any potential threat because it can still record bitcoin transactions. However, the other cryptocurrency coins that are private and regulated by privately-owned companies can be a severe problem for some developed nations.

What Should Investors Do?

The main question here is about the investors. Should they react to the regulations of the government or not? The answer to this is that there is no clear understanding of what will happen after the regulations are imposed. Hence, the investors should not wholly stand against the rules and regulations the government is about to bring. If bitcoin and ethereum do not come under private cryptocurrencies, the vast number of investors are at risk.