Cryptocurrency traders in India are having a difficult time because of the RBI’s regulation to discontinue all banking services for cryptocurrency-related transactions from July. However, many of them are wondering if it is really possible for the Indian government to impose cryptocurrency ban. Let’s find out.
First of all, India has not banned cryptocurrencies like Bitcoins, Ripple, Ethereum etc. Nor has it expressed any desire to do so. On the other hand, it is going to block banks from getting involved in any cryptocurrency-related trading. This means traders won’t be allowed to directly use their fiat money to trade in the cryptocurrency market. However, they can always do multi cryptocurrency transactions on relevant platforms.
Overall, India’s stance has been confusing to many. And, there are concerns that it might ban cryptocurrencies. Now, the thing is India cannot ban cryptocurrencies, even if it wants to. One simple reason for that is that it is impossible to ban cryptocurrencies because it is decentralized. According to the Economic Times, crypto exchanges follow legitimate KYC procedures, so there is nothing illegal about it.
Such digital currencies run on blockchain technologies. So, those don’t have one IP address or server. There are various nodes that can be run by anyone and everyone. It is not possible for the Indian government to ban cryptocurrencies by blocking one, two or even a hundred IPs.
Basically, it’s like blocking torrent websites. The Indian government earlier tried blocking torrent websites. It managed to block a few sites, but hundreds of other sites could not be blocked. It was also possible to access the blocked sites through VPN.
Cryptocurrency Ban Unlikely
The basic idea of creating cryptocurrencies like Bitcoins was to get liberated from regulations. The concept is to create a currency that cannot be regulated by any government or any authority. If Indian banks are dissociating itself from the cryptocurrency market, it’s a great thing because the crypto community doesn’t want to be burdened by bank regulations.
Despite the RBI’s instruction to banks, the cryptocurrency market has been soaring in India every day. More investments are coming in, and the market is literally blooming.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]