crypto ban law

The “crypto ban law” is making the rounds on the internet. The announcement by the government that it will outlaw all private cryptocurrency came as a surprise to the cryptocurrency community. In just a few days after RBI Governor Shaktikanta Das expressed his strong opposition to the prospering cryptocurrency industry on the Indian soil, the Union Government has introduced a Bill to regulate cryptocurrency and, in effect, ban all private cryptocurrency, which will be debated during the winter session of Parliament, which will begin on November 29th and run until January 2019.

The Central Government’s crypto ban law draught does not specify which crypto currencies are considered private and which are not in accordance with the law. The bill, titled “The cryptocurrency and regulation of official digital currency law 2021,” is one of 23 bills that will be introduced, considered, and ultimately passed by the legislature.

It has been widely speculated that the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which has not yet been formally approved by the Cabinet, would aim to construct a crypto ban law in the nation with a few exceptions, will give birth to a lot of conjecture.

In the opinion of several crypto specialists, the government would only ban crypto currencies that do not provide transparency in their trading practises.
What Are Private Cryptocurrency Coins and How Do They Work?

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When it comes to digital currencies, one of the most key traits is that they provide total security in terms of hiding a person’s true name, identity, and transactions that take place on the blockchain network.

Blockchain developers sensed an opportunity to offer more secure and privacy-oriented digital currencies as a result of the exponential increase in bitcoin investors. These digital coins do not reveal a person’s identify under any circumstances.

Such private crypto currencies give an additional degree of protection above coins such as Bitcoin, which rely on blockchain technology to operate.

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Dash coin

Dash is a cryptocurrency that allows its users to remain anonymous while transacting with it. The Dash coin’s PrivateSend feature, which allows traders to choose whether or not their transactions are secret, provides them the opportunity to choose between keeping their transactions private and making them public, according to their preferences.

The one-of-a-kind feature allows customers to stay secure even when they are using coins that do not comply with the legal standards of certain countries. Using the private transmit feature incurs a cost, which is collected by the service provider for each transaction that is completed.

Zcash

Security-wise, Zcash claims to be a more evolved cryptocurrency than the market leader Bitcoin itself in terms of technological advancement. Zcash claims to be the safest sort of digital money available anywhere in the world, noting the heightened security and privacy protections that it has put in place.

With the use of a cryptographic method known as Zero-Knowledge Proof and the offer of an option for investors to conceal their actions, ZEC is rightfully considered as one of the most important private cryptocurrencies in the world. With the use of Zero-Knowledge Proof, it is possible to conceal the quantity of the transaction and the location of the traders.

Monero (XMR)

Monero is a well-known cryptocurrency that is well-liked for its capacity to aid users in concealing their true identities behind virtual walls. When compared to other coins, Monero transactions are far more difficult to trace since they contain ring signatures and stealth addresses, which make them difficult to track down. While these approaches keep the identity of the users disguised, they enable them to carry out any action in an anonymous and secure environment.

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Beam

Beam has a strong emphasis on security, including key features such as complete control over the user’s personal information. When using Beam, the default privacy settings guarantee that all transactions remain confidential. A record of any private information, like as an address or other personal information, is not kept by the blockchain technology that Beam employs.

VergeĀ (XVG)

It is Verge’s policy to safeguard the identities of its buyers and merchants. Although Verge does not employ cryptographic techniques to protect investors’ identities, it does so by using existing and well-tested technologies such as the Onion Router (TOR) and the Invisible Internet Project (IIP) to do this (I2P). Verge had previously acquired notoriety when a popular pornographic website started accepting payments in the cryptocurrency’s Verge token.

Several more cryptocurrencies, in addition to the previously stated digital coins, provide additional privacy and anonymity while dealing in those cryptocurrencies, making it impossible for legal authorities to track down individual transactions in such cryptocurrencies.

In addition to Grin and Firo, there are many additional private digital tokens, such as Horizen and Super Zero Protocol as well as BTCX India, ByteCoin, and UCoin, that guarantee to keep their investors’ true identities and transaction records hidden.

After Effects Of Crypto Ban Law

The announcement of a crypto ban law in India, which hinted at the prospect of a crypto ban in the country, triggered a precipitous drop in the value of digital assets. As soon as the news came, crypto investors reacted with fear and attempted to quit the cryptocurrency market, suffering a loss of more than 50 to 60 percent of their portfolio value in the process.

Crypto investors have also expressed dissatisfaction with the disparities in crypto currency valuations across various trading platforms. While the India-based cryptocurrency trading platform WazirX encountered a little slowdown in its operation as a result of the high volume of traffic it got when people learnt about the Bill trying to outlaw cryptocurrencies in the country.

Crypto investors rushed to liquidate their holdings as soon as they learned about the crypto ban bill in order not to suffer more losses. Bitcoin, the biggest cryptocurrency by market capitalization, fell to as low as Rs 38 lakh in reaction to the Bill announcement, according to data from CoinMarketCap.

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In addition to Dogecoin and Shiba Inu, several inexpensive currencies like Wink, Dent, Holo, and eCash also saw a big drop in value yesterday. Novice cryptocurrency investors, who have just recently began investing, prefer to purchase such low-valued currencies over higher-valued coins such as Bitcoin, Ethereum, and Binance Coin. These inexperienced investors will be the ones who will be the most confused about what to do next if the crypto prohibition bill is passed by the assembly.

WazirX CEO shared a tweet on his official Twitter handle to express his hope that the government will find a solution on crypto ban matter.

Nischal Shetty’s tweet about crypto ban law.

Many people were perplexed by the notion of private coins and public coins in the midst of the crypto ban bill upheaval, especially because the Bill explicitly states that it intends to outlaw all private cryptocurrencies.

Difference Between Private And Public Cryptocurrency

Buying private coins provides an additional layer of protection and privacy by concealing the buyer’s true name as well as his or her location and transaction records. Public coins, on the other hand, are those that provide transparency in their transactions and allow investors to be tracked back to their original source on the blockchain.

Organizations that deal with sensitive information, like as commercial contracts or people’s personal information, prefer to trade on a private blockchain network rather than a public blockchain network because of the transparency provided by public currency. As previously said, private currencies include Monero, Dash, Zcash, Verge, and Beam, to name a few examples.

Bitcoin, Dogecoin, Ethereum, and Shiba Inu, to name a few well-known cryptocurrencies, are open to the public since their transactions are completely transparent. Anybody who has access to the blockchain may see all of the transactions that have taken place on the blockchain. Nonetheless, these coins, like other cryptocurrencies, provide some measure of anonymity to investors who trade on the blockchain.

The Crypto Ban Law Bill also offers a framework for the development of a digital currency that is sanctioned and recognised by the Reserve Bank of India, which is now under development. If the idea receives unanimous approval in the legislature, India would become the second nation after China to introduce a digital currency backed by the central bank of the country.

Following the implementation of a crypto-ban legislation in the nation, China launched its own digital token, the Digital Yuan. The Central Bank of Uruguay, the Riksbank of Sweden, and the Bank of England are all examining the feasibility of building their own self-administered digital currencies, and the process is already underway in each of these countries’ central banks.

The Reserve Bank of India has also called for the enactment of legislation prohibiting the use of cryptocurrency in India. In addition, the central bank has imposed a severe prohibition on cryptocurrency transactions in 2018, prohibiting banks, corporations, and people from engaging in cryptocurrency trading activities.

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