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Q.3) As India finds itself at a crossroads of prohibition and regulation in its tryst with cryptocurrencies, globally, the inclination towards permissive regulation recognises the freedom of choice given to people. In light of this, examine the advantages and concerns with the cryptocurrencies and suggest the approach India should adopt towards the cryptocurrencies. (15 marks)

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Swatantra

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“Mentor’s Comments”

Mentor’s comment-
  • https://www.thehindu.com/opinion/op-ed/embracing-cryptocurrency/article34824894.ece
  • In the intro, mention that recently  El Salvador became the first country in the world to adopt bitcoin as legal tender.
  • In the body mention the issues with the cryptocurrencies such as use for illegal activities, lack of regulation, wide fluctuations in value, the threat of hacking etc. In the next part, mention the global trend towards adoption and using the potential of the new technology which call for balanced regulation instead of a ban.
  • Conclude by mentioning the need for global consensus on regulations instead of outright ban cryptocurrencies.

Comments

38 responses to “Q.3) As India finds itself at a crossroads of prohibition and regulation in its tryst with cryptocurrencies, globally, the inclination towards permissive regulation recognises the freedom of choice given to people. In light of this, examine the advantages and concerns with the cryptocurrencies and suggest the approach India should adopt towards the cryptocurrencies. (15 marks)”

  1. SUMITA DOWERAH Avatar
    SUMITA DOWERAH

    Payment Id: pay HFrdyJMOEZ9967. Please review, Sir.

    1. Swatantra Avatar
      Swatantra

      Sumita

      You have written well according to the demands of the question.

      Just one part about advantages of cryptocurrency is missing as the question specifically asks for it.

      Some advantages:
      Privacy protection
      Cost-effective- lesser transaction costs
      Fast and efficient
      Alternative to central bank backed fiat currency
      Lower entry barriers
      Hard to counterfeit
      Open source methodology and public participation

      Rest of the answer is good, structure is okay too. You can shorten the points to stick to the word limit or use hub-spoke diagrams.

      Read some other answers. Keep writing. 🙂

  2. Vishal Nagle Avatar
    Vishal Nagle

    Ref id 422329
    Please review

    1. Swatantra Avatar
      Swatantra

      Vishal

      In introduction you can mention the example of El Salvador which has recently legalized bitcoin.

      In advantages don’t mention saves energy; infact energy consumption of cryptocurrency is quite high because mining requires powerful systems which use lot of power, you can mention it in drawback.
      Rest of the points are good.

      In approach towards cryptocurrency you can give example of countries like UK, Singapore and US–U.K. has classified cryptocurrency as property , Singapore has now a legal framework for cryptocurrency trading, in US, cryptocurrency being both taxed and appropriately regulated. Other points are good.

      Linking an answer with current affairs will give you some extra marks, try to do that.

      Read some other answers. Keep writing.

      6.5/15

  3. subhashree mallick Avatar
    subhashree mallick

    pay_HH1EGxOD3EGEhl

    1. Swatantra Avatar
      Swatantra

      Shubhashree

      This is a 15 mark question, so you need to write in a bit of detail about the approach India should take towards cryptocurrency.

      Introduction, advantages and disadvantages part is good.

      In approach you can first give some global examples of countries like UK, Singapore and US–U.K. has classified cryptocurrency as property , Singapore has now a legal framework for cryptocurrency trading, in US, cryptocurrency is being both taxed and appropriately regulated.

      Then briefly write about what has been India’s approach till now- RBI ban, SC lifted the ban,new crypto bill.
      Then you can suggest a way forward(regulation and not outright ban is the key).

      Conclusion is good.

      Read some other answers. Keep writing. 🙂

  4. Utkarsh Singh Avatar
    Utkarsh Singh

    Please review.

    1. Swatantra Avatar
      Swatantra

      Urkarsh

      Introduction is very good. Use of table for writing advantages and disadvantages is also good.

      You can mention some more advantages:
      Cost-effective- lesser transaction costs
      Alternative to central bank backed fiat currency
      Lower entry barriers
      Open source methodology and public participation

      Approach mentioned is also good. But you can first give some global examples of countries like UK, Singapore and US–U.K. has classified cryptocurrency as property , Singapore has now a legal framework for cryptocurrency trading, in US, cryptocurrency is being both taxed and appropriately regulated.

      Then briefly write about what has been India’s approach till now- RBI ban, SC lifted the ban,new crypto bill.
      Then the points you have mentioned. As this is a 15 marker, you have the scope to write all this.

      Good attempt. Keep writing. 🙂

  5. Gauri Shankar Meena Avatar
    Gauri Shankar Meena

    Payment Id pay_HHlJ1R1WIIMdGT

    1. Swatantra Avatar
      Swatantra

      Gauri Shankar,

      In introduction you can give example of El Salvador which has recently legalized bitcoin.

      Advantages and disadvantages are good. You can adjust according to marks.

      In approach towards cryptocurrency you should give example of countries like UK, Singapore and US–U.K. has classified cryptocurrency as property Singapore has now a legal framework for cryptocurrency trading, in US, cryptocurrency being both taxed and appropriately regulated.

      Then mention the points you have written. Points are good.

      Linking answers with current affairs will always give you some extra marks, so try doing that.

      Good attempt. Keep writing. 🙂

  6. Harshaa Sharma Avatar
    Harshaa Sharma

    Idpay_HJ2s89guguFYwg

    1. Swatantra Avatar
      Swatantra

      Harshaa

      You have written well. You can use point wise format for writing advantages and disadvantages, more points can be covered in less words. Some advantages you can add:
      Privacy protection
      Alternative to central bank backed fiat currency
      Lower entry barriers
      Hard to counterfeit
      Open source methodology and public participation

      Rest of the answer is good, towards the end you can mention a way forward for the government- strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc

      Conclusion is good.

      Read some other answers. Keep writing.

      6.5/15

  7. ankita thakur Avatar
    ankita thakur

    Payment id-HJHAZEWKSzM3CX

    1. Swatantra Avatar
      Swatantra

      Ankita

      You have written well according to the demands of the question.

      Just one part about advantages of cryptocurrency is missing as the question specifically asks for it.

      Some advantages:
      Privacy protection
      Cost-effective- lesser transaction costs
      Fast and efficient
      Alternative to central bank backed fiat currency
      Lower entry barriers
      Hard to counterfeit
      Open source methodology and public participation

      Rest of the answer is good, structure is okay too.

      Towards the end you can mention a way forward for the government- strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc

      Conclusion is good.

      Read some other answers. Keep writing. 🙂

  8. AABHA RANI Avatar
    AABHA RANI

    RAZOR PAYMENT ID- HHOoNABVzCCLcD

    1. Swatantra Avatar
      Swatantra

      Aabha

      Your content is good, try to structure the answer better.
      Introduction is good, then write advantages-disadvantages, then come to approach towards cryptocurrency.

      Advantages and disadvantages mentioned are good, you can add some points for example- use of cryptocurrency in illegal activities, dark web, tax evasion etc

      While writing approach mention in a bit of detail as this is a 15 marker. Give the examples of UK, Singapore etc as you have given, then briefly write about what has been India’s approach till now- RBI ban, SC lifted the ban,new crypto bill. Finally, you can mention a way forward for the government- strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc

      Conclusion is good.

      Read some other answers. Keep writing.

  9. Deepali Rajan Avatar
    Deepali Rajan

    ref id #000420326
    kindly review

    1. Swatantra Avatar
      Swatantra

      Deepali

      You have written very well. Most of the points are covered.

      You can add some advantages:
      Privacy protection
      Cost-effective- lesser transaction costs
      Alternative to central bank backed fiat currency
      Lower entry barriers
      Hard to counterfeit
      Open source methodology and public participation

      Towards the end you can mention a way forward for the government- strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc

      Conclusion is good.

      Read some other answers. Keep writing. 🙂

  10. Sonal Sharma Avatar
    Sonal Sharma

    #0000422288
    Kindly review

    1. Swatantra Avatar
      Swatantra

      Sonal

      Superb answer, very neat and clean and also covered almost all the demands of the question.

      In India’s way forward, first you can very briefly mention what has been India’s approach till now too- RBI ban, SC lifted the ban, then the draft bill.

      Rest is all good. If you write such answers in stipulated time in exam you will get very good marks.

      Keep writing. 🙂

  11. Vishnu Agrawal Avatar
    Vishnu Agrawal

    Order id:0000422561

    1. Swatantra Avatar
      Swatantra

      Vishnu

      Your content is good but you can structure the answer better.

      Introduction is fine. You can give the recent example of El Salvador making bitcoin legal tender.

      Then write about advantages and disadvantages of cryptocurrency. Points you have written are fine. You can add some if need be.

      Then come to India’s approach, here first you can give example of countries like UK, Singapore and US–U.K. has classified cryptocurrency as property Singapore has now a legal framework for cryptocurrency trading, in US, cryptocurrency being both taxed and appropriately regulated. Then write about India’s approach till now- this part you have written in detail, you can concise it as the question is more futuristic. Then suggest a way forward with more concrete steps- strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc

      Good attempt, structure the answer according to the question, it is better.

      Read some other answers. Keep writing. 🙂

  12. Rohan Sinha Avatar
    Rohan Sinha

    Order id -#0000420396
    @swatantra

    1. Swatantra Avatar
      Swatantra

      Rohan

      Pretty good answer. In introduction you can briefly define cryptocurrency with some examples.

      In way forward for the government you can add – strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc .Also, write a concluding statement.

      Rest is all good. If you write such answers in stipulated time in exam you will get very good marks.

      Keep writing. 🙂

  13. Arpit Singh Avatar
    Arpit Singh

    Payment id HHU8LODcXby9Db

    1. Swatantra Avatar
      Swatantra

      Arpit

      Well-written answer. In introduction you can briefly define cryptocurrency with some examples.

      Global examples are good. In advantages you can add :
      Alternative to central bank backed fiat currency
      Lower entry barriers
      Hard to counterfeit
      Open source methodology and public participation

      In India’s approach first mention what has been India’s approach till now very briefly- RBI ban, SC lifted the ban, then the draft bill(instead of introduction mention it here)
      Rest of the points are good. You can add – strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill etc

      Conclusion is good.

      Keep writing. 🙂

  14. Fun Learning with Rajlaxmi. Avatar
    Fun Learning with Rajlaxmi.

    Review
    Ref no 0000420120

    1. Swatantra Avatar
      Swatantra

      Rajlaxmi

      Very good attempt.

      No issue till concerns.

      In way ahead or India’s approach, first you can give example of countries like UK, Singapore and US–U.K. has classified cryptocurrency as property Singapore has now a legal framework for cryptocurrency trading, in US, cryptocurrency being both taxed and appropriately regulated. Then write about India’s approach till now- RBI ban, SC lifted the ban, then the draft bill. Then mention the steps you have mentioned. You can add recommendations of SC Garg committee.

      Conclusion is good.

      Read some other answers. Keep practicing. 🙂

      7.5/15

  15. shivanshu pandey Avatar
    shivanshu pandey

    pay_HH4AoVE2qPd386 please review

    1. Swatantra Avatar
      Swatantra

      Shivanshu

      In introduction you can briefly define cryptocurrency with some examples.

      Advantages part is good. In disadvantages, you can explain volatility with some recent examples of price fluctuation.

      Rest of the answer is good

      In way forward, you can add – strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill, 1-2 recommendations of Subhas Chandra Garg committee etc

      Conclusion is fine.

      Read some other answers. Keep practicing. 🙂

      7.5/15

  16. Kartikey Singh Avatar
    Kartikey Singh

    pay_HHogiMPYpQ87sC

    1. Swatantra Avatar
      Swatantra

      Kartikey

      You have written well. Content is good.

      Mention a proper way forward suggesting some steps India should take-strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill, 1-2 recommendations of Subhas Chandra Garg committee etc. You can also mention a section about India’s approach till now.

      Rest of the points are good. No scope for much change.

      Conclusion is fine.

      Read some other answers. Keep practicing. 🙂

      7.5/15

  17. Vivek H Avatar
    Vivek H

    Payment Id : 115213946268

    1. Swatantra Avatar
      Swatantra

      Vivek

      Nice attempt. In the introduction you can begin with defining cryptocurrency with some examples.

      Advantages and disadvantages are good, global examples are good.

      In India’s approach mention about the draft cryptocurrency bill 2021 too. Also write a way forward with some concrete steps in such questions-
      take-strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill, 1-2 recommendations of Subhas Chandra Garg committee etc

      Conclusion is fine.

      Read some other answers. Keep writing.

  18. Dr. House Avatar
    Dr. House

    REF ID: #0000425733
    Please review @Swatantra Sir

    1. Swatantra Avatar
      Swatantra

      Dr House,

      Nice attempt. In the introduction you can begin with defining cryptocurrency with some examples.

      Advantages and disadvantages are good.

      As this is a 15 marker you need to write about India’s approach in a bit of detail. Mention of committees is good, you can also mention about the RBI ban, SC quashing the ban and then the draft cryptocurrency bill.

      Also mention some global examples like US, UK and Singapore where it is regulated.

      Finally write a way forward with some concrete steps in such questions-
      strict KYC norms for trading, can be tested in a regulatory sandbox, modifications in the current draft cryptocurrency bill, 1-2 recommendations of Subhas Chandra Garg committee etc

      Conclusion is fine.

      Keep practicing. Give adequate space to each part of the question.

  19. Vishnu Agrawal Avatar
    Vishnu Agrawal

    Order id: 0000422561

    1. Swatantra Avatar
      Swatantra

      Vishnu, I have reviewed this answer above. Please check.

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