Cryptocurrencies have come under criticism from governments around the world but there are certain administrations that seem to have a particular problem with them. Until now, it’s the South Korean government that has most provoked the ire of cryptocurrency lovers around the world. Now it’s the Indian government that looks like it’s about to get tough on Bitcoin traders, even though one of its former advisors thinks such a crackdown would be impossible. Confused? There’s no need to be. Read on to discover what’s really happening.
Why doesn’t India like cryptocurrency?
India’s distaste for cryptocurrency stems from the problems that the country has had with money laundering and tax avoidance in recent years. Around 18 months ago, the Indian government took most of the highest denomination banknotes in the country out of circulation overnight. This move was aimed at freezing the wealth of people who couldn’t easily prove to government authorities that the money they had was legitimate. Put simply, India worries that such people will move their assets into a currency over which it has no control. If Bitcoin or another cryptocurrency were to become a favoured means of exchange in India, the government would be unable to pull off the kind of move that it did before.
Will the crackdown work?
It’s unlikely. Cryptocurrencies are so widespread and control is so decentralised that it’s difficult to see any anti cryptocurrency law as being enforcable. Nevertheless, the anti cryptocurrency noises that have been coming out of the Indian government in recent months have driven some enthusiasts out of the public eye. Cryptocurrencies in India do not enjoy the same legion of excitable fans that they do in the rest of the world. The potential for cryptocurrency in Asia remains so huge that India will definitely be a market to watch.