HOW IS IT WITH THE CURRENT CRYPTO BAN IN INDIA?

in hive-175254 •  6 months ago  (edited)

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INTRODUCTION

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This time around my publication will be very short and I'm planning to use my voting power to reward those of you who are willing to invest their time and drop a valuable comment.

Since the topic will be related strictly to India - all comments from Indian users are greatly welcomed.

IS INDIA BANNING CRYPTO ? OR IS INDIA NOT DOING IT?

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I must admit that it's becoming quite a challenging topic to follow. Especially since not many foreign media outlets seem to be interested in this particular market and at the end of the day it's hard to actually figure out how things are.

Can regular people invest in crypto, trade it, withdraw it to FIAT and pay taxes from capital gain tax?

Would you consider the current approach to Crypto by the Indian government and central banks to be hostile? Neutral or perhaps positive?

Do Indian authorities see it as a threat or an opportunity? What's your impression?

Share your view and your knowledge with me and EARN 10-15k SP upvote on your comment.

CRYPO in Sri Lanka?

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I'm fully aware that India and Sri Lanka should not be treated as one country. However, I'm somehow very curious if anyone reading this post has any reliable information about the way Sri Lankan authorities are approaching crypto markets?

Cheers, @crypto.piotr
@project.hope founder
check out our community: https://steemit.com/trending/hive-175254

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@crypto.piotr as per my thinking and experience. India cannot ban crypto currency market. It is very difficult to do that as we have seen millions of individuals have invested in Crypto market and currently it is a billion dollars investment in total.

They cannot just come and say we have ban crypto. It's been 2016 we are hearing it is going to be ban but it's not 2021.

I can understand they can apply tax and people are ready to pay the taxes on income made.

Currently indianeedcrypto was trending in twitter day before yesterday. This show the unity and power of crypto market in India.

Thanks for dropping by and sharing your thoughts with me @adityajainxds
(comment upvoted already).

India cannot ban crypto currency market.

Surely they cannot succced in banning this market. But it didn't seem to stop them from trying and spreading FUD all the time.

My question is: what's their current stand towards this issue?

Because there is a lack of clarity from the government, I am hesitant to trade crypto in India. The rules in India can be extremely draconian when it comes to policy and dealing with government authorities is not easy and not worth one's time. I don't want to get into trouble at any point in the future for buying something that can be termed illegal. India has numerous examples of implementing policy retrospectively, so they can call any transaction done in India at any point in time illegal.

That said, I think the government for now has changed its stance on crypto from negative to neutral. There are technocrats who have spoken positively about crypto, but then again they could be talking about private blockchains. Unless one sees how good or bad India's regulatory framework is, assessing govt. stance is difficult. There is a body that is working on drafting crypto regulations, so there isn't an outright ban. There would not be an outright ban either because if the west is adopting it, then India will also adopt it. I truly believe that India is waiting to see what happens in the US and Europe and they will draft regulations much in line with those in the aforementioned economies.

The central bank and regulator have no authority over this space unless there laws that tell the regulator what and how to regulate. Therefore RBI has clearly stated that none of its old notifications can be used by banks for anything crypto-related. However, it has said that banks can try and ensure adherence to all other regulations under which banks are governed. This is extremely negative because it is cost-intensive and banks have no technology to ensure the prevention of money laundering using crypto or any violation of the foreign exchange management act in a crypto remittance transaction.

Any tool that allows people to transact in monetary terms, that is not under government watch will be treated as a threat. Crypto won't be seen positively in India. However, any positive adoption from the west may force India to look at crypto positively. Then again, things happen so slowly over here that our crypto regulation may come 10 years after that of the west. Till then crypto in India will be an uncertain space. I have no hopes from Indian authorities to understand bitcoin/crypto.

Hi @karamyog
Thanks for sharing your feedback with me
(comment upvoted already).

I don't want to get into trouble at any point in the future for buying something that can be termed illegal

What about your STEEM and HIVE tokens? do you think owning it may get you in trouble as well?

That said, I think the government for now has changed its stance on crypto from negative to neutral.

Great to hear it. I believe that many wealthy people will continue putting pressure on Indian authorities to accept crypto as a store of value.

Cheers, Piotr

I am not buying or selling hive or steem. I am only earning it. and of course, I can trace and track every crypto investment I have ever made. Also, I will pay taxes on anything I sell. else, I will figure out a way to sell these crypto-assets in some other way in the future.

i think the final regulation will not be so draconian that crypto is considered illegal. moreover, wealthy people in India may or may not need an alternate source of wealth preservation. they have land, gold, and numerous ways of storing wealth. inflation affects the poor disproportionately.

Hello friend @crypto.piotr

This is a topic that requires a wide debate, since many of us who generate content on the steemit blockchain are rewarded with cryptocurrency, and that cryptocurrency in some way or another must have a sense of trustworthiness by governments so that we the users who are the ones who own them can change it to fiat money quietly, or otherwise we can use that cryptocurrency as a form of payment in some stores.

In reality, government regulations is what worries me the least, whether it is China or India that apply prohibition mechanisms in cryptocurrency trading, what will really prevail over time is the great utility of cryptocurrency.

The simple fact that cryptocurrency is decentralized and that anyone can invest in it without it being monopolized by the central banks of any country is what really makes the use and trade of cryptocurrencies globally attractive.

We must be smart and think about the following:

"When man only transported himself by walking, the technology of transporting himself on horseback emerged, when the first horses began to be sold perhaps it did not seem a profitable business, since the first people had accidents on those horses, which is why other people saw such technology of horse transportation as something risky, however as time went by horse transportation became safer and the business of selling horses was profitable."

"Then technology keeps advancing and automobiles came out, surely the same thing happened, the first people who bought cars had accidents, the other people just did not buy cars, so the business of selling cars at the beginning must have been quite bad, however by today we can see how the car business is one of the most profitable today."

If we take into account the two examples explained above, the business of buying, selling and trading of cryptocurrencies is just being born, i.e. it is still very young, which is why we should not panic about the regulations and prohibitions by the governments of the countries, for surely it will not only be India and China who will want to prohibit the marketing of cryptocurrencies, surely as time goes by there will be many more.

What should really worry us is that governments do not really try to ban cryptocurrency trading, because if they do not ban it is because the cryptocurrency would not have a sense of autonomy and sovereignty in citizens around the world, while they continue to prohibit it is because the issue of cryptocurrency is going excellently well.

Wow @carlos84

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

"When man only transported himself by walking, the technology of transporting himself on horseback emerged, when the first horses began to be sold perhaps it did not seem a profitable business, since the first people had accidents on those horses, which is why other people saw such technology of horse transportation as something risky, however as time went by horse transportation became safer and the business of selling horses was profitable."

This example would make more sense if you would stick to story about car instead of horse :)
People used to ride horses even before money has been introduced.

Cheers, Piotr

My own view..
The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade cryptocurrencie or provide services to assist anyone in dealing with or settling them. I think that was the genesis of the whole issue

Then, sometime in 2019, a government group proposed banning cryptocurrencies in India, with anyone dealing in digital currencies facing a prison sentence or severe penalties. The Supreme Court overturned this in 2020, allowing banks to process cryptocurrency transactions.

Recently, Governor Shaktikanta of the Reserve Bank of India (RBI) has stated that the RBI is working on a digital currency.

Looking at all this things, I feel there is something going on underneath within the government is is unclear to the public. They are just trying to bring up something to back their idea. But I don't think India will really be banning cryptocurrency.

I greatly appreciate your valuable comment @benie111
(upvoted already).

Cheers, Piotr

Greetings @ crypto.piotr, although I am not an inhabitant of India or Sri Lanka, I dare to express my opinion in a more globalized context.

I understand that not only in the countries mentioned above but worldwide, especially in countries with few democratic, authoritarian regimes or whose economy is in the hands of few people, cryptocurrencies will always represent a threat, the reason: decentralization.

Most fiat currencies are issued, regulated, and controlled by the central banks of each country, which in turn usually establish "pacts" with the main commercial banks (universal banks) in which both the government and the bankers can make operations that benefit both.

Although money was invented as a tool to facilitate merchant exchanges between individuals and to have a store of value (functions that many cryptocurrencies currently fulfill), the monetary policy uses it precisely to regulate how internal markets develop, always in the benefit of government plans and often undermining the interests of individuals.

Do you think it is a coincidence that it is precisely in a country like China where the use of cryptocurrencies has found the greatest amount of rejection and prohibitions? Not to mention those who, to be "more open", have accepted its use but have bills to strictly regulate them through the application of abusive taxes.

I believe that many governments know that the blockchain offers many and varied development opportunities in different areas: database management, information security, logistics operations, etc. But their decentralization represents a serious threat to them.

Greetings to all

Wow @karupanocitizen

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

Do you think it is a coincidence that it is precisely in a country like China where the use of cryptocurrencies has found the greatest amount of rejection and prohibitions?

Good question. Why China?

Cheers, Piotr

According to what I read written by Hellen Park in https://es.cointelegraph.com/news/indian-central-bank-clarifies-regulations-as-local-banks-shun-crypto Link where you will find information related to what is happening right now in India with cryptocurrencies all the decision of both the government and the central bank of India is related to the allegations about the use of cryptoassets as a mechanism of money laundering, in this case began a campaign to prohibit the use and circulation of coins in India, however this has generated a framework of discomfort and uncertainty regarding the issue, because, In this case the use of foreign cryptoassets is prohibited but the government proposes the creation of its own digital currency that circulates only in India, something that causes confusion, i.e. what is being prohibited is actually the foreign investment and not the cryptoassets if we think a little about the whole matter, i.e. they want to tell investors that they must rely on a cryptocurrency that only serves in India and that they cannot use elsewhere and that additional when they want to withdraw their investment or invest in another cryptoasset, how will it be done if the market is limited. Another aspect that draws attention is a news published by Greg Thomson in the same news portal that I quoted at the beginning of the post where he says that India will use blockchain technology for parliamentary elections in his country, ie voters will be able to export ballots to and from another province, so where are we left with India and its decision to ban cryptocurrencies. Now my question would be what is actually being banned?

Wow @emimoron

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

Now my question would be what is actually being banned?
you've lost me here ...

ps. consider using "enter" from time to time. It's quite difficult to read long blocks of text.

Cheers, Piotr

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Thanks for coming up with this topic. Wil try not to sugarcoat it.

In Short-Term :

We certainly cannot be sure about will it be banned or not. Present government is in habit of taking knee-jerk decisions. There was a lot of backfire for some recent policy decisions but nothing was reverted.

If they see a threat to Indian economy, they may well ban it, quiet possible.
Today, India is pre-occupied with many other major challenges and attention is towards those, Covid situation being one.
Discussion on crypto will definitely come up once Covid situation normalizes.

Crypto can be used for other ill purposes too so in near future we may see some restriction for sure.

A country which can ban PUB-G and more recently asked all social media giants to follow policies or face ban, can do anything.

But in Long-Term:

Once the initial hurdles and clarity is attained, India will easy the crypto related policies.
1.4 billion population is a huge number, it is very crucial that India adopts crypto.
Looking at the bigger picture, many investments have started following, new exchanges are coming up.
As per recent RBIs instruction, banks were asked not mislead customers by showing old notifications regarding crypto ban.
Lets hope for the best.

I greatly appreciate your valuable comment @knowledgefruit
(upvoted already).

Cheers, Piotr

India is one of the countries that has been creating more of the issues for crypto exchanges and orders in the past but now things are improving and I can see that it's a kind of positive momentum coming outside from RBi and govt as well.

Indian exchanges are witnessing a great number of new registrations every day and even a recent RBI tweet has made things easy for them. Indian will not be banning crypto however it might take longer to bring regulation because we are going through a tough time due to covid.

India is a bigger market for anything and if crypto regulations come in then it will contribute big for crypto as well.

Earlier media was playing bad with crypto but now they have started doing good and it will help more people to make entry in crypto.

Thanks for dropping by and sharing your thoughts with me @alokkumar121
(comment upvoted already).

India is one of the countries that has been creating more of the issues for crypto exchanges and orders in the past

Yeah, drama is very big thing of Indian culture :) so there is also much drama around crypto :P

Greetings friend @crypto.piotr

The world of cryptocurrencies is something that no one can stop it, due to the fact that it is a decentralized economy and anyone can invest in it avoiding the Monopoly of the big Banking entities of any of the countries, so it is considered as a bullish economy.

DOES INDIA PROHIBIT CRYPTOCURRENCIES, OR IS INDIA NOT DOING IT?

From my perspective the Indian government has never thought of banning the use of cryptocurrencies in the Country, they only make threats to generate time and plan economic strategies that benefit the Government as such, generating enrichment to the nation by taxing Cryptocurrencies, and the people or companies that acquire them.

Can normal people invest in cryptocurrencies, trade with them, withdraw them to the FIAT and pay capital gains taxes?

Although many would like to indulge in taxing the capital gains generated by trading with cryptocurrency capital, but as it is considered a decentralized economy it is not possible for them to do so, besides not having laws that regulate it in this matter, it does not have the authority to pay any kind of tax for this enrichment.

Do the Indian authorities see it as a threat or as an opportunity? What is your impression?

From my perspective they can see it in both ways, I mean, they see it as a threat to their current economic system, which generates large taxes that support the country's economy, at the same time they can consider it as an opportunity to generate new income, which is why they always give an extension to the decisions taken regarding the "prohibition of cyptocurrencies", in search of a solution that generates economic benefits for them.

Thank you for this amazing comment @chucho27

Hope to see more of you within our Project.hope community :)

Comment upvoted already.
Cheers, Piotr

Hello @crypto.piotr
India is one of the most populated countries in the world. Decisions made by crowded countries such as India regarding crypto money will be effective all over the world. This is inevitable.

Now let's talk about India's decision to ban cryptocurrencies. India is trying to ban cryptos for almost the millionth time. These containment efforts are doomed to fail. Because cryptos cannot be banned. Even if a ban decision is taken, this ban cannot be successful. Because the future is in crypto and blockchain technology, and the country that should know this best is the countries that make huge investments in the IT sector, such as India.

Until 2 years ago, people were not aware of cryptos. Especially in the last 2 years, almost everyone knows about cryptos and everyone is investing in crypto according to their own budget. All these ban news will make very few people aware of cryptos, and there will be almost no people who do not invest in cryptos. What I'm trying to say is that news of the ban is an advertisement for cryptos and attracts investment in the industry.

Thanks for dropping by and sharing your thoughts with me @volkiceper
(comment upvoted already).

Even though I'm not from India but I will like to drop my opinion. I think, generally, governments tend to have reservations with anything that they perceive as threat. I must say, the policies by various government is only a reflection of their perception of a particular thing.

In the case of cryptocurrency, I think the government should be exposed more to the potentials of cryptocurrency and to see the benefits in it. I believe this will make their perception to change.

The truth is, cryptocurrency is like revolution and no one can stop revolution from happening. Well, let's wait and see as things unfold.

Thanks for bringing up this amazing topic buddy

Greetings friend @crypto.piotr, great topic that you address in this article, from my opinion the fact that some countries are taking measures against cryptocurrencies is because they know that these are growing widely and as they have no control over them seek ways to restrict their use so that people who use them daily feel fear and stop using them, here a question arises why not attack them directly? and shield themselves in the environmental impact that these generate to be mined as in the case of China.

Governments know that cryptocurrencies are the future of the world economy and want to have them under their control at all costs, they see cryptocurrencies as a threat because they do not control them but if there were the possibility of doing so I assure you that they would speak wonders of them because it is for their benefit.

hello @crypto. piotr the Fiat money, It is a matter of the past what happens in the governments of the world, is that they have based their money only on trust, for the value of their currency is not backed by gold or any other type of resource, but of course controlled by the banks, in these times of pandemic the indebtedness of many countries is great, and many were given the task of printing banknotes to get out of the way, unlike the blockchain, which has its money monitored by all, it is easy to understand that governments do not want to lose economic control of their nations, but the fact that we are a threat means that we are on the right track, we need to show the world that cryptocurrencies are the currency of now and that soon you will pay with your phone at the corner bakery with your cryptocurrency of choice.

Hi @crypto.piotr
Honestly, I don't think there is any government on the planet that's able to completely ban cryptocurrency.
However, let's not forget that many countries around the world are seriously thinking about launching their own national cryptocurrency.
For example, China is getting ready to launch eYuan CBDC and the same goes with the USA as they are planning to launch their own national crypto pegged to USD.
Now, I don't know what the Indian government is thinking about, but I have just a feeling that they are trying to buy some time by spreading FUD to delay people from buying Bitcoin until they decide whether to adopt it or release their national cryptocurrency as well.

Thanks for dropping by and sharing your thoughts with me @qsyal
(comment upvoted already).

Hola @ crypto.piotr
I honestly do not understand much about the movement of cryptocurrencies, I have only been working with them for a few years without fully understanding the process, however I allow myself to give my opinion. I don't know anything about the process in India but I have a couple of ideas that I want to share:
Firstly, the "hostile" market occurs in many countries, the fear that everyone is playing to win is a situation that is out of the hands of governments because everyone wants "a slice of the pie" and if it is the thickest, the better. In the end it is a game of domination.
Secondly, from my own experience I can say that the "cryptocurrency" market is not for everyone if we consider that it requires technological devices to which many people do not have access as well as the Internet line, the financial resources to buy the "Cryptos" or the necessary knowledge to work with them so that the understanding about them reaches a very small audience. In India, where social inequalities are reflected in "castes" some more privileged than others, where being born poor or living in misery is a Karma to live and not to face makes that a great part of the population does not have a good academic formation, much less will they have it in technology.

From @hojaraskita to the world and back: Thanks for reading me

Thank you for this amazing comment @hojaraskita

Hope to see more of you within our Project.hope community :)

Comment upvoted already.
Cheers, Piotr

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In theory this is possible however it is a theory and far from reality.

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In a country where there are multiple levels or authority and each one interprets and implements their own rules some of which are real and some notional this leads to a state of flux and confusion. The end result is pretty dangerous for the end user.
Even though it is impossible to Ban crypto yet there are endless roadblocks for the end users.
From tax notices to accounts getting blocked and the notional possibility of possible legal consequences there are plenty of road blocks that can a pain in the neck for the common person.

I greatly appreciate your valuable comment @thetimetravelerz
(upvoted already).

Cheers, Piotr

Hello dear friend @crypto.piotr
Appreciate to touch this topic.
The word Ban is frightening anyway. A few days ago, when I heard the discussion on cryptocurrency ban in India through various newspaper TV news, my mind was getting disturbed. Once it came to mind to take the Trezor wallet. However, I could not believe that India, represented everywhere, would stop cryptocurrencies. In between, news of crypto ban comes through rumors of some newspapers, TV news but till now no concrete decision has been taken on it. The situation behind this is quite clear that countless numbers of people from India are investing in crypto. The kind of circumstances that are being created, I never thinks that there will be a crypto ban in India. Still, there is a fear in the mind that no clear instructions are being received from the Government of India. Anyway, arguing with the authorities in India is like putting your hand in a beehive. As far as I understand digital currency will be the main source of exchange in coming time, so it would be wise not to ban crypto. Even if appropriate taxes are levied for it. Except for a few countries, crypto is being legalized in most countries. Like the western countries, crypto regulation in India should also be accelerated. Regrettably, India is not looking at crypto positively in monetary terms. As far as I understand the final regulation will not be so stringent as to consider crypto illegal in India. There is an inevitable need for an alternative source of wealth protection to the wealthy in India, the most suitable source of which is only crypto. In the end, I would like to say that whatever decision the government has to take, the sooner it is better because most of the people are living in this dilemma that if they invest in crypto and the government will ban then their all will be drowned.
Regards.

Hello my dear friend @crypto.piotr, it has become very common the last days that some countries are reluctant with the use of cryptocurrencies, observing the comment made by @virajherath about Sri Lanka, it is remarkable the agreements or closeness they have with China for that reason, one could speculate that the decision they take may lean towards the one taken by China, but anyway we will have to wait. On the other hand, I think that many governments began to see cryptos as threats, but despite this, some are trying to get certain benefits from them, as I see very difficult for the crypto world to collapse, as a saying in my country goes "if you can not defeat the enemy you join him". This is what they will end up doing, they will accept cryptos, but they will place certain laws to take advantage of them.

See you later, have a great weekend..

Hello @crypto.piotr
Obviously, I don't know for sure what happens in India, because it is not a country I know, but the truth is that there is a lot of cross information. Something is going on, but I don't know if it is.good or not, or if they are rumors with the intention of generating snot in the markets.
I am sure it will be interesting to read the comments of those who live in India.

well, with last news i read about crypto currency from india, the news said that crypto is still very much in use and its not been banned by any government. its true that lot of uncertainty still clouds the info in that news but the truth remains that the adoption of the technology is still low in India. that's my 2 cent on the issue

It is not surprising to see a topic like this, and I'm sure same will still arise in other countries. The governments of countries are afraid of the crypto world in that it cannot be controlled by them. They can't regulate it, neither can they introduce taxes from crypto related transactions.

Another angle to this is that the gap between the wealthy and the poor is expected to keep widening, not that many people will be crossing the poverty landmark into wealth. This is what crypto affords, but is a threat to the wealthy, who are politicians in many cases, or who are empowered by politicians.

Crypto transactions not reflecting personal details is also another threat to the government. For example, the Central Bank of Nigeria placed a ban on bank accounts operating cryptocurrency in the country. Their concern was that the protests that held in the country last year was allegedly funded with cryptocurrency, and they could not trace the financiers, so that they could intimidate or torture them.

These are some of the reasons why cryptocurrency will continue to face opposition from governments across the world. While I am not sure specifically what the situations are in India, I think it could be related to the same in Nigerian.

Wow @tolustx

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

They can't regulate it, neither can they introduce taxes from crypto related transactions.

Ehm. Correct me if I'm wrong, however ... they may not be able to ban crypto, but this market is already heavily regulated (more than almost any asset that exist out there) and taxes from crypto related transactions are being calculated in US.

Cheers, Piotr

In my opinion, from what I have read they have not banned it, but they will leave it up to each bank to decide whether to accept it or not, although that has a lot to do with the support of China as they said in the comments, it influences a lot but analyzing the situation my point of view is that they will not be able to, there are many users with millions of dollars in cryptos, to lose valuable customers for not accepting them I do not think so and besides this is the future now everything is handled with computers and the Internet.

For me this is going to continue to be pure government talk.

Thanks for dropping by and sharing your thoughts with me @ajfernandez

I think i stumbled upon a post yesterday which spoke about the central bank in india warming commercial banks not to tell customers that crypto is illegal. Something of that sort.

https://www.indiatoday.in/amp/technology/features/story/rbi-clarification-on-bitcoin-and-cryto-trading-here-are-5-key-takeaways-1809378-2021-06-01

thanks for sharing @nonsowrites

Banning Crypto is not possible and they know it very well Forex trading is also banned in india but many people doing it. I think they should have to legal it completely with proper tax terms and conditions. So it can be beneficial for all crypto indian holders and traders.

Baning it or not. People may use vpn and access anything they want. They can exchange it with each other. Everyone has the right to do with his money what he wants. Especially choosing the money he/she earns and choose where to earn it. It's a human right !

India is one of the countries that has been creating more of the issues for crypto exchanges and orders in the past but now things are improving and I can see that it's a kind of positive momentum coming outside from RBi and govt as well.

Indian exchanges are witnessing a great number of new registrations every day and even a recent RBI tweet has made things easy for them. Indian will not be banning crypto however it might take longer to bring regulation because we are going through a tough time due to covid.

India is a bigger market for anything and if crypto regulations come in then it will contribute big for crypto as well.

Earlier media was playing bad with crypto but now they have started doing good and it will help more people to make entry in crypto.

@tipu curate 5

@tipu curate 5

@tipu curate 2