indicator of efficiency . Moreover , the circulation of legal tender requires enormous banking network which is costly while this is not necessary for the transfer of cryptocurrency . The supply of crypto currency is determined by market forces is very significant for them .
The history of cryptocurrency since its inception showed theft and hacking of millions of dollars worth Bitcoins , their use for Hawala , criminal activities extensively . It became a powerful financial tool for criminals . Sudden declaration of bankruptcy by crypto exchanges due to theft and hacking results in the loss of money by common people who invested in crypto assets .
The largest Bitcoin exchange in the world MT Gox lost 8,50,000 Bitcoins , worth $ 473 million in 2014 due to theft , declared bankruptcy , resulted in the big loss to common people . The Homero Josh Garza , who initiated startups , punished to pay fine to the extent of $ 9.1 billion for fraud . Similarly , Tether exchange in November 2017 , Bitcoin Gold in 2018 , Korean exchange in June 2018 subjected to theft of millions of dollars worth crypto currency . Fake websites for fake currency are common . Despite so many harmful effects , the international organisations are silent and dominant countries are hesitating to ban or to take action against cryptocurrency should be noticed .
Various Countries - Bans on Crypto Currency
UK , US and European Union initiated studies as to how to control crypto currency in response to the sudden declaration of bankruptcy by MT Gox . However , they did not propose for ban .
Meanwhile ,‘ awareness ’ programmes , platforms , Exchanges , Advertisements to attract people , Networks related to cryptocurrency strongly strengthened at the global level . In March 2018 , the world crypto currency could attain place in the Marriam Webster dictionary and later on in Oxford English dictionary . The European Union Parliament 6 defined cryptocurrency . Thus , all this paved the way to raise people ’ s acceptance .
The Paul Krugman , who won Nobel Prize in Economics in 2008 states that cryptocurrency increases money laundering in the world and it is a bubble and will not lost while Warren Buffett , US business magnet states that cryptocurrency is the indicator of money laundering and it will come to a bad ending . Only in 2021 , all the governments started discussing the necessity of controlling cryptocurrency .
Financial Action Task Force which has membership of 38 nations including India , strongly states that cryptocurrency should be controlled in view of its effect on money laundering and updated ‘ travel rule ’ in June 2020 to standardise its transactions .
In September 2020 , the European Commission published the strategy of Digital Finance while US Securities and Exchange Commission started examining it , where as UK states that it is compulsory for firms related to crypto currency to register in the ‘ Financial Conduct Authority ’.
The Basal Committee on Banking Supervision guided by the Central bank Governors of group of 10 ( G10 ) countries proposed that if banks acquire crypto assets , then they should keep capital aside equivalent to the estimated losses . In May 2021 , China banned all the transactions related to crypto currency . South Africa experienced many scams and most significant among them is disappearance of Raees Cagee and Ameer Cagee , who are the founders of Africrypt Exchange with Bitcoins worth $ 3.8 billion in April 2021 . Similarly , Mirror Trading International , whose operations are $ 170 millions , suddenly vanished . Therefore , the government is formulating rules to regulate it from 2022 onwards . The South Korea started implementing a new regulation from March 2021 onwards where all the firms related to crypto currency should be certified by Information Security Management System to get registered in Korea
Financial Intelligence Unit . The Republic of Turkey banned the purchase of crypto assets with crypto currency in April 2021 . Contrarily , El Salvador accepted Bitcoin as legal tender in 2021 while Cuba followed suit in August 2021 .
The Library of Congress which always reviews the perspective of various countries on cryptocurrency reveals that by November 2021 , 113 countries directed their Financial Regulation Agencies to formulate regulation policies to regulate crypto currency and crypto assets . While 42 countries banned few usages related to cryptocurrency the absolute ban can be seen in Algeria , Bangladesh , China , Egypt , Iraq , Morocco , Nepal and Tunisia .
Crypto Assets - Legality
The America International Revenue Service took a decision to consider Bitcoin as an asset in 2014 and therefore impose capital gain tax on it . Accordingly , it has directed that income tax returns should be submitted inclusive of Bitcoins . Thus , it became legal with this . The Big Wall Street Bank declared that it will provide Bitcoin funds from 17 , March 2021 onwards to its rich clients . While BNY Mellon , the largest corporate banking company declared that it will provide services related to crypto currency from February 11 , 2021 . The VENMO which provides Digital Wallet Services to 60 million people consisting of students and small businessmen announced to utilise its platform for the transactions and store of crypto currency on April 20 ,. 2021 . Moreover , the University of Pittisburg announced that its peer-reviewe d journal ,’ Ledger ’ will publish studies related to cryptocurrency . All this indicates its acceptance in US .
The America Red Cross , UNICEF and UN World Food Program accepts donations in cryptocurrency is the final flash . Thus , cryptocurrency and crypto assets continue to stay firmly . India - Cryptocurrency
In India the popular celebrity Amitab Bacchan along with his son
Class Struggle