Sunday, November 28

Another blow for Bitcoin: India prepares a law to ban cryptocurrency mining and transactions

India may be the next superpower to hit cryptocurrencies after China. The country is taking steps to pass a law that would ban cryptocurrency mining and transactions, at the same time that it would give way to an official and public digital currency.

“Irresponsible” advertising and too high a risk for the population

The reasons set out by law are the risks involved in these transactions in the face of a population that has become fond of them without first having made any other investment (Several cryptocurrency traders have reported rapid user growth.) This ignorance can carry a high risk that many people lose money.

The high amount of advertising about cryptocurrencies that floods the country is also mentioned, starring in some cases by famous Bollywood actors and described as “irresponsible” by the government for announcing great benefits and influencing young people. And to all this is added the concern of a possible use of cryptocurrencies to finance criminal and terrorist activities.

The Indian parliament begins its winter activity on November 29, and it will be from there that we will see if this law progresses or not. For Shaktikanta Das, governor of the central bank of India, the important thing is the less the country starts to consider more seriously the effects of these cryptocurrencies one way or another.

Today we have also known that Swedish regulators seek to ask the European Union to prohibit the mining of cryptocurrencies, although the reason they expose is environmental: the objectives to be carbon neutral cannot be achieved if the energy consumption of those cryptocurrencies does not stop. Different arguments, but the same effect that can make things more difficult for Bitcoin and company.

Image | Dmitry Demidko

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