Why is Cryptocurrency Legal in India?
Trading in cryptocurrency has been illegal in India. The Indian government has said that it will not allow the trading of Bitcoin and other cryptocurrencies in the country. In 2013, The Reserve Bank of India asked the exchanges not to provide the bank accounts.
This was done following a plea filed by a Delhi resident on the grounds that the bank accounts of cryptocurrency exchanges would be used to launder money.
The cryptocurrency was invented by Satoshi Nakamoto in 2009. It is peer-to-peer electronic cash that is not controlled by any central authority.
Bitcoin and other cryptocurrencies are created through a process called mining. These miners are rewarded with Bitcoins in exchange for solving complex maths problems. How is a Cryptocurrency Created?
Legalising cryptocurrency in India.
An ecosystem has formed around cryptocurrency trading in India. Over time, it has been reported that Indian citizens and traders, both, have expressed their desire to have regulation in this field.
At the same time, other regulatory bodies have also issued statements that are positive toward regulating cryptocurrencies. Cryptocurrencies were registered as a foreign currency under the Reserve Bank of India Act (1934) and thus any entity that deals with them should also be registered with the RBI since they are considered legal tender.
With the clarification by the government, it seems like the cryptocurrency industry in India will be regulated in near future.
How to buy Bitcoin in India.
bitcoin Cryptocurrency can be bought and sold like stocks in the United States of America (USA), Hong Kong, and many other countries of the world. However, Bitcoin trading is banned or restricted in India because there is no legal framework for cryptocurrency trading.
The Indian government has not issued any official notification on cryptocurrency trading and its implementation. The state-owned National Stock Exchange of India Limited (NSE) even called for comments from the public on how to regulate cryptocurrency trading in India. Currently, there is no prohibition on bitcoin trading in India and no guidelines on it.
Is Bitcoin Legal in India?
Twitter went bonkers with people pronouncing it legal and endorsing it. There were various tweets with the hashtags #cryptoindia and #bitcoinindia that generated mixed responses. However, if you Google, you will find that they are legal in India and so is its regulation.
Currently, in India, the Securities and Exchange Board of India (SEBI), Ministry of Finance (MoF), Central Board of Direct Taxes (CBDT) and Reserve Bank of India (RBI) all have a regulation for cryptocurrency. However,
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SEBI and RBI do not have an official stance on Bitcoin. In 2016, RBI said that the usage of virtual currencies such as bitcoins for making payments was “highly speculative”. It added, “The usage of Bitcoins particularly for illicit and illegal activities cannot be ruled out.
Conclusion.
This is an ongoing story and we will update as more info come in. So, stay tuned.
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