Indian Government plans of imposing a blanket ban on crypto tokens. But this may be impossible as the essence of the technology used by these crypto tokens is very complicated and makes regulating it even more difficult.
Several sources claimed that private use of cryptos would be banned while experts say that a total ban is impossible. Even if the government imposes a complete ban over the possession and trading of these tokens, it is technically impossible to uphold it.
Firm owners in the country stated that even if a total ban is imposed people can still retain possession of their tokens through cloud storage or by using ledgers.
Evermore people can move their assets to exchanges in other countries that would put them just beyond the government’s reach. Foreign exchanges can allow Indians to convert their money into these tokens and therefore will make them untraceable.
The government can block access to foreign crypto exchange websites however that won’t be effective because of the presence of Virtual Private Networks that can easily by-pass these restrictions.
Analysts and experts in the industry are trying to convince the government to make an efficient regulatory system instead of banning the tokens. This way the government can make them abide by the rules that would, in turn, decrease the scams and help in securing money and private customer information through blockchain technology.
On the other hand, banning the crypto-currencies altogether will only make them more favorable for illegal activities. Since a complete ban is impossible, regulation is the only way forward; the sooner the government accepts this, the better.