Falling fertility, rising anaemia stand out in national ... Centralized exchanges operating in India such as WazirX and Coinswitch provide the so-called custodial wallet. This means that all the crypto is actually held in a central wallet in the traders name and can be tracked by both the company and governments. Non-custodial wallets, however, cannot be tracked by any authority as they are almost always anonymous. A transfer of crypto from a non-custodial wallet to another happens over the internet, without a third party. Even if crypto exchanges are banned, users can transfer their holdings to a non-custodial wallet such as Metamask or Ronin and transfer cryptocurrencies among each other. The fiat equivalent of this can be transferred in cash or people could use bank transfers. The only thing you need for crypto to run is the internet and a wallet," Bhasin said. You dont need an exchange to have a wallet. There are so many apps on Apple and Googles Play Store, which will sit on your devices. It is going to be very difficult for a government to identify a non-custodial wallet, even if they were to come up with regulations to stop exchanges," he said. Transfers like these ideally require the internet. However, there are solutions to circumvent even that. Canada-based Blockstream sells a product called Blockstream Satellite, which allows people to add base stations and connect to the bitcoin network without being connected to the internet. It is meant for miners and really serious players, but is a good example of just how difficult it is to ban cryptocurrencies. A person can sell crypto anywhere, unlike equity and stock, according to Bhasin. So, most people will also find liquidity overseas. A wallet made on Metamask operates across borders and crypto can also be moved from exchanges such as WazirX to Metamask. That said, a ban could affect retail investors who do not quite understand the technology behind crypto. It could also spell trouble for crypto exchanges operating in India. Crypto exchanges will have to return the money they hold for these investors, said Anirudh Rastogi, founder of law firm Ikkigai Law, which represents many crypto firms. A ban will lead to criminal liability only if the new bill specifically provides for it. If you look at the 2019 draft, which was the only draft ever issued to the public, it does mention criminal liability," he said.
Govt faces an uphill task if it wants to keep cryptocurrencies at bay
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