PROPOSED BAN ON CRYPTOCURRENCY

Jayant Kumar,

Student at Dr. Ram Manohar Lohiya National Law University, Lucknow

Best Citation – Jayant Kumar, PROPOSED BAN ON CRYPTOCURRENCY, 2 ILEMJ 33, 2022.

Abstract

All that glitters is not gold is an aphorism meaning all that appears to be precious does not always turn out to be as expected. Cryptocurrency appears to have huge potential but is the music really so sweet or is there any catch? Cryptocurrency moved in stealthily, a term frequently associated with cryptocurrency, to capture the masses imagination and surprised everyone with its charm. People are learning and unlearning the tricks of this trade. This has caught the legislators napping all over the world: unprepared for this unprecedented coin system. Cryptocurrency has both merits and demerits, and it is yet to be seen if the former outweighs the latter or not. Giving this system a free hand in its nascent stage can make it an unruly horse. The very idea of this system screams for it to be regulated, which is quite antithetical to its core idea of having no central authority in the first place. Not all the people in the world are efficiently equipped to be at par in this new game of cryptocurrency and here comes the need for its regulation, to prevent its misuse and exploitation of people. The functioning of cryptocurrency gives rise to many challenges like money laundering, terror financing activities and much more. Various countries are at a different stage in the understanding and acceptance of these currencies in their economy. Countries are still studying the scope of this currency and to tap the benefits of these. This paper delves into exploring the various challenges posed by the introduction of these currencies in the world economy and the need for legislation to use cryptocurrency in a much safe and efficient manner.