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A cryptocurrency is a form of virtual asset based on a network that is scattered across a huge number of computers. It is a decentralized form that allows cryptocurrency to exist outside the control of the central government or authorities

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was introduced in the Lok Sabha. The bill seeks to create a favorable framework for the creation of digital currency that will be issued by the Reserve Bank Of India (RBI).

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The Cryptocurrency Bill was scheduled in the year 2021, in the Winter Session of the Parliament but it didnt happen. However, in the current Lok Sabha session, the Ministry of Finance was questioned about the Bill.

The question was raised as to: What is the current status of the Cryptocurrency Bill? When will it be tabled and be open for inputs? Which ministry/department will regulate the virtual assets like cryptocurrencies, non-fungible tokens (NFTs) , decentralized applications, real estate tokens and other assets.

The Minister of State Finance, Shri Pankaj Chaudhary, on behalf of the Ministry of Finance answered the questions by saying, Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation on the subject can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards. He later added that the policy-related ecosystem and crypto assets are with the Ministry of Finance.

The government of India was scheduled to introduce new cryptocurrency regulations during the Winter Session of Parliament. This was the second time that the Cryptocurrency bill was listed but got delayed. The first time it happened was during the Budget Session of Parliament in 2021.

Cryptocurrency is a debatable topic ever since it was introduced. Some countries believe in the decentralized power of cryptocurrency and some dont. The legal status of crypto is different from country to country.

Cryptocurrency is used anonymously to conduct transactions globally between account holders. This raises currency concerns for the governments of different countries. Some of the officials or legislators because of the lack of control and illicit ties may not support the use of cryptocurrency.

Under the countrys anti-money laundering and counter-financing of terrorism laws (AML/CFT), some countries may have introduced regulations in efforts to lower the usage for these purposes.

Let us see the countries in which cryptocurrency is legal, illegal or restricted.

The U.S. has a dual governance system. There can be different laws for cryptocurrency in different states. For example, New York has been in favor of cryptocurrency since 2016 when it launched a licensing framework for crypto and business exchanges called BitLicense.

There are many states in the U.S. that are yet to take a stance on cryptocurrencies. The different states hold varied regulations on cryptocurrency but to sum it up the U.S. has a positive approach to the trading community and it is a country where cryptocurrency is legal.

The European Union has 27 member countries and the legislation at the Union Level is quite a complicated zone. So far, the majority of countries in the European Union have opted for a soft regulatory framework for cryptocurrency.

In the year 2020, the European Commission finalized a plan for legislation to regulate virtual assets, which many companies or agencies have endorsed within the Union. The legislation is planned to keep the financial regulatory frameworks from fragmenting. The commission also makes sure that people have access to and can securely use cryptocurrency.

The United Kingdom has not yet formulated any separate legislation regarding the regulation of cryptocurrency. They do not consider it as legal tender but as property. The Financial Conduct Authority (FCA) under the currency system regulates licensing to authorized businesses related to cryptocurrency including exchanges. They have a firm set of rules, and the ones that are seeking the license have to strictly follow them.

The United Kingdom gains taxes from crypto trading just like any other paper currency trading. The businesses that are involved in cryptocurrency and crypto exchanges have to follow corporate tax rules.

Canada has a cryptocurrency-friendly stance and cryptocurrencies are viewed as an item by the Canada Revenue Agency (CRA) for income tax purposes. This means that any income or capital gain from a cryptocurrency transaction must be reported.

The country has been more motivated than others when it comes to crypto regulations. It became the first country to accept a bitcoin-traded fund (ETF), with some of them now trading on the Toronto Stock Exchange.

Canadians consider crypto exchanges to be money service businesses that are under the purview of the Proceeds of Crime and Terrorist Financing Act. In return, as a result, the exchanges need to be registered under the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). People can report certain records, abide by compliance plans or any suspicious transactions.

Heres a list of the countries where cryptocurrency is banned:

Cryptocurrencies as a payment medium in India are not regulated by any central authority. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. So, trading in cryptocurrency is done at investors risk.

The Finance Minister of India, Nirmala Sitharaman, proposed to tax digital assets and has increased the debate on the legality of cryptocurrencies in the country. While many have embraced the decision to tax virtual currency as it is the first step to recognizing it, the government is yet to pass any official clarification on this matter of whether currencies like Bitcoin are legal or not in India.

Based on the various key statements made by the Reserve Bank Of India Governor as well as various government spokespersons including the Finance Minister of the country, one can conclude that cryptocurrency is illegal, but there is no certain ban on it in India. They are unregulated but according to the recent Union Budget 2022, the government of India announced a 30% tax on gains from cryptocurrencies and a 1% tax deducted at source.

Tax on cryptocurrency is one of the most confusing aspects in India. Initially, there was no Income Tax Act or Goods and Services Tax (GST) defined cryptocurrencies in India. In the recent Union Budget 2022 outcome, the Finance Minister presented a tax regime for virtual or digital assets that include cryptocurrencies.

The Cryptocurrency Bill 2021, is a legislative initiative that was introduced in the Lok Sabha by the government to regulate the thriving market of cryptocurrency in India. The industry has seen a rush in investment in the last few years, especially during the covid period not just domestically but also internationally.

Crypto trading platforms like WazirX, CoinDCX, Zebpay, etc. in India are witnessing a big leap in volumes. An unregulated crypto market is unfavorable and risky even when the government wants to protect young entrepreneurs and investors. By introducing the Cryptocurrency Bill in 2021, the government officially took a step toward regulating cryptocurrency. The bill seeks to create a favorable structure for the creation of the official digital currency that will be issued by the Reserve Bank Of India (RBI). It also prohibits all other private cryptocurrencies but, with certain exceptions to boost the underlying technology of cryptocurrency. In the Union Budget of 2022, the government already took the step of imposing a 30% tax and 1% TDS on gains from virtual digital assets or cryptocurrencies.

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Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker - ForexExpo Dubai October 2022 & more

Best-In-Class for Offering of Investments

Trade 26,000+ assets with no minimum deposit

Customer Support

24/7 dedicated support & easy to sign up

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Get $30 in your verified trading account on your first deposit.

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Trade CFDs in crypto, forex, stocks, metals, commodities & more!

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Designed for traders of all levels, from beginners to professionals.

Please invest carefully, your capital is at risk

The Cryptocurrency Bill 2021, is still in process and might even take a while to be open for consultation. The Government of India already took a step when they introduced taxation on virtual assets in the Union Budget 2022. However, the introduction of the Cryptocurrency Bill is an important milestone.

A cryptocurrency is a form of virtual or digital asset distributed across a huge number of computers based on a network. It is typically a decentralized digital fund designed to be over the net. It is not governed or regulated by any central authority or government.

Regulation of cryptocurrency makes a safer marketplace that will build more confidence and turn out to be a good thing for people who wish to invest in them and will often lead to higher prices over time.

Terror financing through cryptocurrency is a global worry voiced first by the Indian government. An unregulated system has more chances to fund illegal activities. Cryptocurrency exchanges need huge investments in terms of technology to detect any foul transactions that are suspicious.

With regulation, outside manipulation will not affect the market much. It will still be a risky investment market, but with regulation, it will be stabilized and reduce some risk for investors.

Cryptocurrencies are legal in a few countries and illegal in a few. U.S., Canada, Singapore, the United Kingdom and South Korea are countries where cryptocurrency exchanges are legal. Countries like China, Morocco, Iraq and Qatar have banned cryptocurrencies completely.

No, cryptocurrency regulation can actually be a good thing as it will reduce the risk factors for investors and can be a healthy development sign for technological advancement in areas of cyber security including the use of blockchain.

The biggest concern related to crypto is that it can be an extremely volatile investment. The market can be exceptionally high and can immediately be terrifyingly low.

Crypto has scalability issues and investment risks among new investors. Cryptocurrencies havent yet proven to be a stable long-term investment. The unpredictable market future makes investors concerned about their investments.

There is also a fair degree of risk involved with trading in cryptocurrencies given the fact that they dont come with a sovereign guarantee, instead are decentralized and can be operated privately, thereby heightening the risk factor related to the investment.

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Crypto Bill India: What Is Crypto Bill & How It Works - Forbes

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Perhaps no cryptocurrency has rewarded investors more in the past few years than Shiba Inu (SHIB -1.23%). Although this dog-inspired token currently sits 89% below its all-time high price from October 2021, it has still skyrocketed nearly 12,000,000% since its introduction in August 2020. Perhaps some investors are ready to buy the dip in hopes of monster gains.

But I believe this would be a costly mistake. In fact, Shiba Inu is a cryptocurrency that is best avoided. Instead, take a closer look at Bitcoin (BTC -0.06%).

The world's top digital asset is poised for an incredible run.

Shiba Inu is a blockchain network that's built on top of Ethereum, making it compatible with a wide range of decentralized applications and cryptocurrency wallets. The issue, though, is that Shiba Inu lacks any sort of competitive edge against the tens of thousands of tokens out there. It doesn't even crack the top 100 cryptos in terms of the number of developers working on it, which doesn't bode well for its future to boost utility and adoption.

To its credit, Shiba Inu has attracted a fervent community of supporters, which helps explain why its market cap is $6 billion, making it the 16th most valuable crypto in the world. Having strong supporters is important and adds value, but it's not something investors should be parking their hard-earned savings behind.

What happens if the hype surrounding Shiba Inu starts to dissipate? There's no way of predicting this ahead of time. And it adds lots of risk to the equation.

Things could already be heading in the wrong direction. In 2023, Shiba Inu's token rose about 30% in value. This significantly lagged behind Bitcoin's gain of more than 150% or Ethereum's rise of more than 90%. And it was a worse performance than even the Nasdaq Composite index. In what was a raging bull market for risky assets, the fact that Shiba Inu trailed in returns might indicate that investor enthusiasm might be down for good.

Those who want to add Shiba Inu to their portfolios should understand that this endeavor is more akin to gambling than true investing. And this should be avoided.

Even after Bitcoin's huge gain last year, it's poised for another run not only in 2024, but over the long term. The approval of spot Bitcoin exchange-traded funds will help to make this a legitimate financial asset and open up the floodgates of fresh institutional capital to the mix. Higher demand supports a higher price.

The next halving, scheduled to take place in April, will reduce the rate of Bitcoin's supply growth by 50%. Historically, this has been an extremely bullish development. Several months after a halving, the crypto has typically reached new all-time highs.

What makes Bitcoin truly special, however, is that it's a decentralized asset that no single entity controls. Furthermore, Bitcoin will be absolutely finite because there will only ever be 21 million coins in circulation.

Some view this as a huge improvement compared to the current financial system. Central banks around the world have devalued fiat currencies throughout history, printing money and adjusting interest rates with no end in sight, causing uncertainty when it comes to inflation and economic activity. The public debt burden of $34 trillion in the U.S., which will only keep expanding, demonstrates the issue.

Bitcoin is the steady, indifferent solution to this. In other words, it can be viewed as a hedge against financial catastrophe.

Investors looking for a safer cryptocurrency to buy, one that solves a serious problem in the world and that has huge upside over the long term, should consider Bitcoin over the more speculative Shiba Inu.

Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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Forget Shiba Inu, This Cryptocurrency Is Poised for an Incredible Run - The Motley Fool

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A bitcoin exchange-traded fund approval could revolutionize the cryptocurrency the way it did investing in gold a generation ago and send bitcoin's price rocketing to $200,000 by the end of next year, according to Standard Chartered. All eyes are on the U.S. Securities and Exchange Commission in the runup to its Jan. 10 deadline to approve or reject one of multiple applications to launch a spot bitcoin ETF. The agency is widely expected to approve more than one ETF to level the playing field from the beginning. "We see this as a watershed moment for normalizing bitcoin participation by institutional money, and we expect approval to drive significant flows and price upside for bitcoin," Geoffrey Kendrick, a London-based analyst at Standard Chartered, said in a note Monday. "If ETF inflows materialize as we expect, we think an end-2025 level closer to $200,000 is possible." The British bank assumes 437,000 to 1.32 million bitcoins, or between $50 billion and $100 billion, will be held in spot bitcoin ETFs by the end of 2024. Standard Chartered has previously said the price of bitcoin could reach $100,000 by the end of this year. On Tuesday, bitcoin traded just below $47,000, a level it reached Monday for the first time since April 2022. Standard Chartered's bullish estimate looks back at the introduction of the SPDR Gold Shares ETF in 2004. Similar to bitcoin, the first gold ETPs, or exchange-traded products, were initially small and restricted to markets outside the U.S., such as Europe and Canada, Kendrick said. "The price of gold rose 4.3x in the seven to eight years it took for gold ETP holdings to mature after the first ETP was introduced," he said. "We expect bitcoin to enjoy price gains of a similar magnitude as a result of spot ETF approval, but we see these gains materializing over a shorter (one- to two-year) period, given our view that the bitcoin ETF market will develop more quickly." Bitcoin is currently up 10% in 2024, after soaring 157% in 2023. Some investors are concerned the market is overestimating the effect on the first day of a potential ETF approval. Even they acknowledge, however, that the launch of bitcoin ETFs and flows of traditional fiat currencies into and out of them are likely to be the most significant driver of the cryptocurrency's price this year. CNBC's Michael Bloom contributed reporting.

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This week's bitcoin ETF decision could drive the cryptocurrency to $200000 in 2025, says Standard Chartered - CNBC

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Bitcoin has experienced a sharp rise in price volatility following the approval of several spot bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on Wednesday.

A spot bitcoin ETF is a financial product that investors hope will open the gateway for mainstream capital to flood the crypto market.

On Wednesday, the SEC approved ETF applications from some of the biggest names on Wall Street, from BlackRock (BLK) to Franklin Templeton (BEN).

Major market participants, such as JPMorgan Chase (JPM) and Goldman Sachs (GS), have offered to help these asset managers in creating and redeeming shares for their new bitcoin-based funds. Most of the ETFs are expected to begin trading Thursday, issuers said.

Read more: Crypto live prices

SEC Chair Gary Gensler made it clear in a statement Wednesday that his agency "did not approve or endorse bitcoin" when it signed off on the new products. "Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto," he added.

The SEC's approval caused a sharp increase in bitcoin price volatility. In the past 24 hours, the digital asset experienced a surge, reaching nearly $48,000 (37,675), followed by a downturn back into the $45,000 range, before subsequently recovering to currently trade slightly above the $46,000 mark.

The large price swings caused over $86m in liquidations of leveraged bitcoin (BTC-USD) positions on cryptocurrency exchanges, according to Coingecko data. Of these liquidations, the majority, around $51m, consisted of long positions.

According to CoinGlass data, the overall crypto market witnessed the liquidation of over $134m in long positions in the past 24 hours. This contributed to a total of $281m in total liquidations across major cryptocurrency exchanges.

Read more: Bitcoin rally stokes $50k speculation over spot ETF anticipation

Liquidations tend to occur during volatile price swings, when prices rise or fall sharply. During these market conditions, there is either a rush to buy or sell.

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The majority of liquidations in the past 24 hours were long positions held by derivatives traders who were anticipating the cryptocurrency's value to rise. However, due to the sudden market decline, they were forced to sell at a loss to minimize further losses.

Watch: Institutional investment brings new momentum to the crypto-space | The Crypto Mile

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Bitcoin price swings dramatically as SEC approves cryptocurrency for ETFs - Yahoo Finance UK

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