In this video Mukesh Mohan Gupta has discussed the following issues related to Crypto Currency. Following major issues have been discussed in this video:
What is Cryptocurrency,
Problems with Cryptocurrency,
Government, RBI and Supreme Court views and actions so far on Cryptocurrency,
About the Bill to be introduced on Cryptocurrency,
What charities are required,
What should be done by investors now.
The above issues have been explained as under:
WHAT IS CRYPTOCURRENCY
Daily life has been dependent on technology. Concept of the virtual world created a new business phenomenon known as CRYPTOCURRENCY which is Digital currency.
Cryptocurrency is a medium of exchange,
Cryptocurrency is not a real-world money,
Cryptocurrency can be used for many financial transactions
PROBLEMS WITH CRYPTOCURRENCY
No control/ Regulation by Government, RBI and SEBI,
Heavy transaction cost,
Problem is not with crypto but of its use – Transaction or Investment / Asset,
How the value should increase if it is used as asset/ investment,
How many currencies are required for transactions,
There is a Guarantor behind any currency. In our country the RBI gives guarantees. There is no guarantee behind Crypto currency.
Impact on real monetary systems.
If we can purchase virtual and real goods and services with virtual currency, it will reduce the demands on real money. Value of Indian Rupee will drastically fall
Money laundering threat. No tracking of transactions in case of money laundering suspicion.
Almost 10 crores investors. Maximum users in the entire world. America is at No 2 with less than 3 crore investors. There are only 8 crores Demat accounts.
Average age who are investing 24-25 years. Thus, youth is most affected. They may not have complete knowledge of investment and thus may lose their entire investment some day.
Investors are from small cities, villages also.
We have two exchanges BSE and NSE which are regulated exchanges for investment. There are 16 exchanges for crypto in India and total exchanges are more than 300 and noone is regulated.
China, Indonesia and Egypt have complete bans.
ACTIONS SO FAR BY GOVERNMENT:
NOVEMBER 18, 2021
Prime Minister Narendra Modi has delivered the keynote address at The Sydney Dialogue, via video conferencing.
PM addressed the event on the theme ‘India’s technology evolution and revolution’ and told that:
Ensure it does not end up in the wrong hands which can spoil our youth and urged all democratic nations to work together to ensure that such a thing does not happen.
BILL DURING WINTER SESSION 2021
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is listed among 26 items of legislation for consideration in the winter session of parliament, according to a bulletin issued by the Lok Sabha on 23rd November 2021.
SALIENT FEATURES OF THE BILL
To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India.
The Bill also seeks to prohibit all private cryptocurrencies in India.
It may allow for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
Which will be considered as private and which will be public crypto currencies,
Ban will be on Transaction or on Investment,
What will be status of existing investment in case there will be complete ban,
In case it is not banned and regulated who will be the Regulator,
Govt view on Crypto to consider it as currency or investment,
Tax on investment (GST/ STT/ Short term or Long Term capital gain),
Will Government or RBI issue its own digital currency
WHAT SHOULD BE DONE BY INVESTORS
Wait and watch,
#What is Crypto Currency