Jakarta, CNBC Indonesia – When bitcoin was becoming hype In the global financial market, the Government of India has taken a different step of 180 degrees. Reuters Sunday (14/3/2021) reported the Indian government will ban all types of activities related to bitcoin and other cryptocurrencies.
A draft law (RUU) has been prepared, and one source who knows about it is confident that the bill will be passed into law.
In the bill, all activities related to bitcoin and the like are prohibited. The perpetrators will be given 6 months to liquidate assets related to bitcoin, after which if they still have cryptocurrency they will be subject to penalties in the form of fines.
Even at a government panel discussion in 2019, it even recommended 10 years in prison for people who mine bitcoin, own, sell, transfer or any kind of activity related to cryptocurrencies.
However, officials quoted by Reuters declined to provide details on the details of the cryptocurrency bill, whether it could be jailed or how much fines would be imposed.
If realized, India will become the first major country to implement strict rules regarding cryptocurrencies. Even though China has banned cryptocurrency activities, it has not imposed sanctions on the perpetrators.
The Central Bank of India (Reserve Bank of India / RBI) has been paying attention for a long time to cryptocurrencies that are widely used to finance criminal activities, due to the lack of control by an authority.
In 2018, the RBI prohibited banks from carrying out activities related to cryptocurrencies. But the ban was lifted last year after crypto exchanges filed an appeal in the Supreme Court.
Several years ago, many considered crypto currencies to be just scams and were used in money laundering activities. Especially seeing the movements that have extreme volatility, rising and falling very sharply in a short time.
However, since last year bitcoin has grown in popularity after institutional investors began to include it in portfolios. Then companies started investing in bitcoin. At the same time, the crime rate in cryptocurrencies has also dropped dramatically.
The report from the crypto intelligence company, CipherTrace, shows the losses from theft, hacking and fraud in the world cryptocurrencies in 2020 it will decrease to 57% in 2020. In 2019, the loss rate due to crime on the crypto market reached US $ 4.5 billion, while in 2020 it was US $ 1.9 billion.
Fraud is still the biggest crime in the crypto market, followed by theft.
“Theft from hacking on crypto exchanges continues to decline after institutional investors stepped in and adopted stronger security measures,” said Dave Jevans, CEO of ChiperTrace, in an interview with Reuters in late January.
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Photo: CoinDesk- – |
Meanwhile, Coindesk, which received data from the analytical company Coinfirm, reported that throughout 2020 the value of crime in the CRC currency reached US $ 10.5 billion.
Of that total, 67.8% were embezzlement and fraud cases. Meanwhile, crime in second place is on the black market and drug trafficking at 18.4%. In addition, there is also use for terrorism financing even though the value is less than 0.1%.
CNBC INDONESIA RESEARCH TEAM
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