Regulating Bitcoin and Crypto is rather a lot simpler than Money & Gold, mentioned Adv PM Mishra of Finlaw Associates
Bengaluru (Karnataka) [India], April 1 (ANI / PNN): Cryptocurrency has become a global phenomenon in recent years, although much remains to be learned about this evolving technology. Many concerns and concerns revolve around technology and its ability to disrupt traditional financial systems.
We are often asked about cryptocurrencies and whether they are a potential substitute for gold, what role bitcoin should play in a portfolio, and how easy it is to regulate bitcoin, crypto versus gold and cash transactions.
Smuggled gold accounts for over a third of demand in India, the world’s second largest gold importer after China. This may result in a $ 1.3 billion loss of revenue for the central government, according to a news report published on Deccan Chronicle on June 12, 2018. Official imports have decreased by almost 50 percent, while the volume of gold smuggling has increased compared to 2018. Think about 2021. To avoid some of the taxes, there will be more over-the-counter purchases. Now imagine that after so many government precautions, gold smuggling is still flourishing in our country.
In India, money laundering is popularly referred to as a hawala transaction. It gained popularity in the early 1990s when many of the politicians were trapped in its web. Hawala is an alternative or parallel transfer system. “Hawala” is an Arabic word that means the transfer of money or information between two people using a third person. The system comes from the Arab traders to avoid robbery. It is several centuries older than western banking. The hawala mechanism made it easier to convert money from black to white. Black money refers to funds earned on which income and other taxes have not been paid. Black money is earned through illegally traded goods or services. The amount of money laundering is unimaginable.
The whole world and the Indian government are spending so much on regulating these transactions that I don’t think anyone has recently forgotten about the banknote ban in India.
According to Adv. PM Mishra Bitcoin & Other CryptoCurrency is absolutely easy to regulate compared to Gold & Cash. As he said, on the one hand, cryptocurrency is completely anonymous. On the other hand, it is completely transparent and traceable.
It is anonymous in the sense that you can hold a crypto address without revealing anything about your identity in that address. A person could have multiple addresses, and in theory there is nothing that could link those addresses together or suggest that the person owns them.
Sending and receiving virtual currency is like writing under a pseudonym. If an author’s pseudonym is ever linked to his identity, everything he has ever written under that pseudonym will be linked to him. Criminal activity can be fended off at the passport with tools that match customer data with Bitcoin transaction histories. This can make it easy to identify high risk customers, stay AML compliant, and avoid the blemishes associated with crypto money laundering.
In order to protect the ordinary citizen from crypto scams and stop Crypto money laundering activities, India should quickly take the following steps:
* Only allow one bank to deal with CryptoCurrency.
* Appoint a young and innovative cyber team to use Indian IP address to track if all wallet addresses are up and track them down to location.
* Allow some ISPs to allow the IP address for crypto exchange so it can be easily tracked.
* An additional tax will be charged for the Crypto Custody Service.
* Include Crypto Insurance Company.
* The limit Crypto Holding depends on the ITR of the person or company.
* Limit overseas crypto transaction along with strict vigilance.
* Issue license Individual trader who wants to trade.
* Issue license on exchanges.
Adv PMMishra said I am very positive about the current government’s Crypto Regulatory Approach and I would love to see India win the Crypto Currency Race as Crypto is nothing but digital gold.
This story is provided by PNN. ANI is in no way responsible for the content of this article. (ANI / PNN)
(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)
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