BAN BITCOINS – IS IT POSSIBLE?

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Bitcoin is a part of the major discussion going in the crypto market. Bitcoin has been around the periphery of financial markets for quite some time. With the passing years, it has made an effort to walk into the markets. Many investors, merchants, and businessmen have joined hands and appreciated the currency and its exercise. Thus leading the governments to give a thought to its acceptance legally. Apart from acceptance another question that acquaints our mind is – Can the government of any major country step in and do the unthinkable – Ban Bitcoins?

 

FLASHBACK

  • October 2014, Russia to issue ban and fines for cryptocurrency use. Russia’s ministry of finance expected to include penalties for use and creation of methods of generating cryptocurrencies. Read more
  • March 2015, Anti-Bitcoin law will be passed by Russian Ministry of Finance. Read more
  • Jan 2015, Netherlands Stockholder Association Director Calls for immediate ban on Bitcoin
  • July 2015, Solar energy researcher and panel manufacturer, Andy Shroder was removed from merchant listing by eBay because he accepted bitcoins for his products.
  • Nov 2015, Taiwan to ban Bitcoin after Billionaire BTC ransom attempt. Read more

 

Taking a glance at the previous year reports, it is clear that attempts were made to ban bitcoins in specific countries. Some survived, some failed.

Another oft-repeated argument against a ban is in news.

 

CHINA

Two days back, viaBTC CEO Haipo Yang tweeted that “China will shut down all exchanges”.

Later, Caixin, regional Chinese media outlet posted an article claiming discussion is taking place amid regulators regarding the ban on Bitcoin exchanges.

And today, Binance, the exchange that funds its operations through an ICO token called the BNB, has finally made a step and announced that Chinese simply can’t trade here anymore.

The Chinese government has tried to limit the Chinese to a walled room by blocking popular foreign websites. In fact, traffic monitoring tools are exercised by the government to stifle political dissent. Taking a step to ban Bitcoin would not be too large a leap for the Chinese government.

 

INDIA

BTCX India was the primary Bitcoin exchange designed and built in India. While following KYC and AML guidelines, and allowing instant INR deposits and withdrawals, BTCX India was forced to close by their bank, which no longer services Bitcoin businesses. The reasons are unknown, whether it is based on a perceived risk or just a simple ban by management, but the issue is widespread in India (source: cryptocoinsnews.com)

If you remember last year, the government of India took a bold step to demonetize INR 500 and 1000 currency. Do you think this bold step that turned most people’s night into days is the last thing that Indian government can put a ban onto? Indian people had to stand in a long queue just to get old currency exchanged for new one. Getting money in hand was not an easy task. ATMs were surrounded by long queues. Though the step was taken to curb income tax evasion the difficulty people faced turned out to be the bad execution of the plan and resulted in an increase in the demand for bitcoins.

 

What will happen?

Even if a country or its government decides to ban bitcoins or makes trading or possessing bitcoins as an illegal practice then how will it execute its move. The question arises how exactly the government will enforce such a ban. Seizing your bitcoins is an impossible task for the government unless you forward your private key to them. And most of the businessmen are already into the exercise of bitcoins. So the demand for Bitcoin will plummet if the government decides to take any such step. All exchanges would be closed, thus making trading of bitcoins difficult and risky. As a result, the government’s objective will be achieved but the losses will be huge.

 

source : cointelegraph.com

 

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