Bans on cryptocurrencies and laws to prohibit the thefts all around the world
Cryptocurrency isn’t a legal tender in India, exchanges are legal but the government has made it difficult for the authorities to operate all the finance. The chairman of the central board of taxation has made a law for everyone that whoever makes any profits with Bitcoin has to pay the taxes because there are a lot of problems regarding the tax payment.
Various issues of cryptocurrency:
1) As there is no centralized database and loss of digital wallet can lead to permanent loss of digital virtual currency.
2) Having a digital wallet makes it vulnerable to theft like hacking, robbery, and malware.
3) Because of decentralized database function and there is a high risk of violation of laws for laundering of money and funding for terrorism.
Laws issued by governments on cryptocurrency to stop thefts in different years:
- The secretary-general of economic affairs in 2017 has suggested ways to deal with consumer protection issues and to deal with CFT/ AML. The government is drafting a new petition for the best cryptocurrency protection for the regular man.
- The exchange regulations of cryptocurrency have become harsh with time. In April 2018, the RBI (Reserve Bank of India) banned all the financial institutions and banks to settle or deal with any digital currencies. The law will have a quality framework for an official digital currency that should be issued by the government. The Central government has planned to provide a law to ban all the private cryptocurrencies and, in that place, to put a currency that is issued by the central bank. In 2018, RBI has also asked to break all the deals dealing in digital currencies like Bitcoin, Ethereum, Litecoin, etc. Within three months.
- In 2019, the government proposes to ban all private currencies and will be behind bars for 10 years for whoever is caught dealing with the digital currencies. The authorities have also asked for launching a program that is backed by government officials, for digital currencies which will be similar to functions like RBI notes.
- In 2020, the Supreme Court has permitted all the banks to handle all the transactions for trades and exchanges, and overturn the ban of the Central Bank which caused a major issue. The government has been searching for ways to deal with cryptocurrencies, but no economy is wanting to take the ban blanket from over the cryptocurrency.
Several countries that had various laws on cryptocurrencies:
- Saudi Arabia has lawed out Bitcoin because it stated that it was incompatible with Muslim law.
- Iceland has forbidden Bitcoin for protecting its country’s money against losing too much money.
- The Bolivian government has also forbidden cryptocurrency.
- Ecuador has issued its national currency for compliant schemes for regular transactions.
The lurking fear of cryptocurrency has forced governments to ban and provide laws for trading goods and various transactions with digital currency.