Tech India

Why Crypto-currency is Banned in India

The virtual currency means cryptocurrency is illegal in India. Here are the reasons why the cryptocurrency is banned in India.

In 2017, the most popular crypto-currency Bitcoin was increasing rapidly. With a view to making money, lots of Indians started investing money at that time.

Just after few months, the price of Bitcoin went down from $20,000 to $4,000.

There were thousands of Indians who lost their money.

The legendary investor Warren Buffett considers crypto-currency is all about gambling and speculation.

The concept of crypto-currency was new in India in 2017. And at the same time, the price of Bitcoin was increasing rapidly. That’s why so many people invested and they eventually lost their money.

Also read: How much does TV Channel Make Money?

Why Bitcoin is Banned in India

There were so many apps by which we can buy and sell Bitcoin. To make quick money, thousands of people started investing an app from which we can trade our bitcoin.

No Regulations on crypto-currency:

All the crypto-currencies have no regulations. That means no one can control any crypto-currency.

For instance, if you want to invest your money in the stock market in India, SEBI(Security and Exchange Board of India) has the authority. SEBI has created rules and regulations.

If you face any problem related to investment in the stock market, SEBI has the authorities to guide you and they can solve your problem. But, there is no one in crypto-currency to listen to your emergency problems.

Investment in Indian Economy:

It was a big threat. Instead of investing money in the stock market via a mutual fund or direct equity, if people start investing in Bitcoin, the economy may face slow down.

That’s why RBI(Reserve Bank of India) has banned all the banks in India for any kind of transaction related to crypto-currency. If you have invested in Bitcoin, you need to use the money on any other platforms that accept Bitcoin payments. You simply cannot transfer your money to the bank.

Wallet Hacking:

The crypto-currency experts are saying that the concept of the blockchain(the algorithm behind crypto-currency) cannot be hacked.

But, there were lots of people whose money was stolen from the wallet. That means it was not that much secured.


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Anuj Vohra

Hi , I am Anuj Vohra. I write articles about technology, economics, and business case studies at Itsfacile.com

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