BTC has a new enemy (India unlimited use of cryptos)

After the last great dispute with the Asian giant (China) bitcoin is preparing to face a new battle against the Indian giant who has decided to limit the use of active cryptos in his nation.

The country is mobilizing to pass a law that would prohibit the transactions and mining of cryptocurrencies, an action that would give way to an official and public digital currency made in the same country.

The law exposes as a reason that the cryptocurrency to behave irregularly presents a risk for certain transactions, especially before a population that has become fond of them without having previously made any other investment (many cryptocurrency operators have reported rapid growth users). 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 that the country begins to consider more seriously the effects of these cryptocurrencies in one way or another.

authorities show no signs of embracing cryptocurrencies. The nation's central bank says it has "big concerns" about the asset class. And six months ago the Indian government proposed a ban on trading digital currencies, although it has not said anything on the matter since then.

In this way, a banker that Bloomberg spoke with, who invested more than $ 1 million in crypto assets, said that, with no clear income tax rules currently, he was concerned about the possibility of retrospective tax raids if it became publicly known. that he was a major crypto investor.

Thus, it already has contingency plans to move its operations to a foreign bank account in Singapore should a ban be introduced.

To be sure, the value of India's digital asset holdings is still a small part of its gold market. Still, the growth is clear, especially in trading: The four largest crypto exchanges saw a daily increase in trading of $ 102 million from $ 10.6 million a year ago, according to CoinGecko.

Finally, for now, increasing adoption is another sign of Indians willingness to take risks within a consumer finance sector that is riddled with examples of regulatory failures.