02.07.2021
To The prime minister,
Shri Narendra Modiji.
Sub: Crypto currency menance.
Dear sir,
Namaskar,
Let me first congratulate you and your government for strictly implementing PMLA law 2002 ( Anti money laundering act), FEMA law and all other money acts in effort to curb black money. Your government has been conciosuly taking efforts to promote digital transactions and digital India to curb black money stashed in notes.
You must be aware that now a days, with technological advancement, international community has developed a currency called crypto currency such as Bitcoin, Etherium etc. There are more than 4000 crypto currencies available in market as of january 2021 with total market cap of 2.3 trillion dollars.
Indian Reserv Bank has neither accepted nor banned such kind of currencies in India. Advocates of these currencies in India promote such currencies as an asset instead of currency and therefore they do not expect any control of reserv bank, which controls currencies in India.
Advocates also wants promotion of same in comodity market and future and options market, being commodity according to them.
.
The fact is crypto currency is neither currency or commodity, nor an asset or an equity of any company which is real.
The whole concept of crypto currency is virtual, without single known owner who is responsible for its distribution, without any intrinsic value, without any geographical boundaries, without any real assets underlying same. It is only a conceptual thing whose value changes as per demand, supply and distribution. It has an artificial quota limit decided by its creater who is unknown or hiding, who holds unrealistic, limitless power to operate same. These currencies are working on a technology known as blockchain which is more transperent, real time, working simultaneously across geographies.
In india, there are stricter laws from income tax, wealth tax, Anti money laundering, fema etc. which requires every investment backed by stricter KYC norms ( know your customer) and source of income proof.
Every company going public, needs strict corporate governance and relevant disclousers. Every transaction either in currency, comodity, equity, bond or any other financial market is under strict supervision of relevant authorities under various laws. Every income generated from or transactions of asset such as land, real estate, live stocks, agriculture produce are also covered under relevant laws. These crypto currencies are not covered under any law of India.
Presently we find lots of advertisements and its discussions on all kind Indian media which creates awareness, benefits and drawbacks etc of crypto currencies to create suitable atmosphere for its prospective progress.
As a common citizen, we do not understand why there are two types of treatments for two types of citizens of India? One who invest in crypto currencies and the remaining once.
In such case why and how the so called crypto currencies is working without any control of law? The governnent of India under its relevant ministries should take holistic approach to this issue without delay before menance of such virtual currencies spread.
I request you lookinto the matter.
Madhav Bhole
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