Recently, an industry report draft has been published on the Indian Blockchain sector that has raised serious concerns surrounding a draft proposal by the Indian government to ban Cryptocurrency and regulate the digital currencies, stating loud the previous criticism by industry stakeholders and the entrepreneurs. As per the report that is yet to be published and compiled by the Blockchained India, the critical problems plaguing the Cryptocurrency and the Blockchain industry are illegal transactions, evasion of taxes and lack of talent all of which are primarily due to the lack of regulations.
A government official has opened up about the matter in April stating that the draft of the ‘Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019’ has already been circulated to the relevant departments. The previous week, one of the fact has came into light that the media reports suggested holding, selling or dealing in cryptocurrencies such as Bitcoin could offer one 10 years in jail. While, it has also been seen that ‘A Right to Information’ query filed by the Blockchain lawyer named Varun Sethi showed the Reserve Bank of India had not issued any such kind of circular. Also that it had not received any communication from the government with regard to such a draft.
The most affected are the people investing in these assets as they were not sure of what exactly is happening on the regulatory front. Till date, the Indian VC investments in the Blockchain sector have totalled a paltry of $5.3 million as compared to $2 billion in the Blockchain equity deals globally or the $20 billion that has been raised through the ICO route, as per the report by Incrypt. In order to solve the issue related to the evasion of taxes, the government could collaborate with Cryptocurrency exchanges to bring in the transparency. All the legit Cryptocurrency exchanges would be ready to collaborate with the government.
This year, the industry insiders do not anticipate the government to make any major announcements for this sector. However, talks might get initiated with the experts to address their concerns. An Indian delegation has recently studied the public Blockchain activity in the Swiss City of Zug expecting to recommend policy changes focussed on adopting a similar framework in the country.
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