No Sacred Status for Bitcoin in India
The emerging economies and Asian giants have to keep an eye of the virtual money, as they see a potential fraud in the widening of its network.
The increasing of prices of bitcoins indicates that the crypto currency gains more popularity around the world. The emerging economies and Asian giants have to keep an eye of the virtual money, as they see a potential fraud in the widening of its network. The huge and impetuous grow from several dozen of dollars to marks above a thousand of dollars for a single BTC reasons the necessity of regulation and policy from governments, or, at least, to form an opinion that identifies the status of the coin, allows or denies the use if it by the citizens of a particular country.
The first anxious signs were received from China and France. Both in different words and statements voices the state attitude towards the crypto currency as a possible fraud, warned financial, governmental and private institutions from interaction with the digital coin environment and its users. It is very surprising observing earlier news from China, while the search engine and network service giant Baidu announced the acceptance of coins for their turns. The position of France also might be an example for the whole European Union and the policy of a single member country might become a trend for the others.
Now India has analyzed the situation in the bitcoin environment and considering the parallels with the real, physical economy is warning the local institutions from any uncontrolled or thought through actions or contacts with the branch. The warning is not only about bitcoins – it features all possible crypto currencies and digital payment methods. The biggest concern of the authorities are not the money types themselves, but more their use and adoption. The amount of investments in virtual businesses is also growing in India and in the final might appear to be a pyramid or fraud.
Experts, who are responsible for this statement, are comparing the coin with the Ponzi scheme or one of the most famous financial pyramids. The Italian American has attempted to speculate on the arbitrage of international reply coupons for postage stamps. For the realization of that idea he received investment bigger the overall value of all the valuable documents printed after the war. Currently, it seems are very close comparison for the Indian authorities.
The experts from all mentioned countries do not believe that there might be any threat from the bitcoin community for real world economies – the amounts are humble, but the use is limited to users, who are known due to the basic principles of the exchange to fiat currencies. The biggest problem might be the use of the coin for illegal business, black market actions, crimes and even terrorism. Many countries observe the opportunity to apply anti-money laundering rules to minimize the losses of the naïve users. The representatives of the power understand that the most users do not intend to commit any crimes or to purchase illegal matters for the digital coins, but surely they might suffer from such deeds of other persons. The collapse of many market places, exchange services and other players is an important advantage for the withstanding powers of the progressive payment method.
The citation from S.N.Ravichandran, an anti-cybercrime expert, says that "Bitcoins have no backing of any government which means in the event of a liquidity crisis, nobody is bound by law to help." It means that in case of any violation, crime, loss of funds or other negative happenings the user is not protected by any low, government or organization.
The recent news and actions show that bitcoin needs to introduce some regulations to restore the reliability and trustworthiness of the system to return the level of respect and trust not only from active users, but to gain additional support from authorities and countries. The future is in possible cooperation and open conversations.