Topic: Bitcoin should be regulated as stocks in India ,says Think Tank Founder (Read 293 times)

We never know how much it will affect the banking sector in our country but once the cryptos made legal then more payments will be accepted in our country as well which clearly going to affect the number of banking transaction for sure which is the thing the banks don't want to happen.

I totally agree with you my friend.
Bitcoin surely have some additional benefits but it does not mean that people will stop going to Banks. We all are familiar with the different facilities provide to us by Banks. Entire financial system of a country is managed by Banks so I don't think they can become completely obsolete.

I often read threads regarding the possibility of Bitcoin to replace Banks but is it necessary for one to replace the other? According to me both can work simultaneously. We don't want Bitcoin to be legalized so that it can replace fiat or banks completely. We want to use it where the banks or fiat can't be used for example for small digital transactions. Even Nischal Shetty CEO and Founder of WazirX in a webinar gave an example of Ethereum Blockchain where in order to run codes we need to pay via ether which is a cryptocurrency. So the motive is to introduce a new and effective way of transactions where fiat cannot be used. Those who have not gone through this webinar should see this once.Link-:https://youtu.be/anWAdy7haQY.

There are some drawbacks of Banks on which they should definitely work . They should improve their customer service, should charge less fees and should offer some digital services which is the need of the hour. So instead of finding reasons to  ban crypto's, they should work on their flaws and let this industry grow.

This should not be the case as banks employees should not be fearing as still people will continue to operate with the banks and not all of them will come to crypto and considering the risk not many would be even ready to indulge in it. Only thing is that payment or transfers internationally may have a drastic effect rest may get reduce but still will continue to exists.

People who are in power don't have any knowledge to understand these things, but banking sector know if we let the decentralized payment to grow then they will lose their jobs that is why they are trying to make it illegal for no reason even if it is going to benefitable for lot of India people.

Till now government has not being in supportive of crypto as such and in last couple of years we have not heard anything positive form government side. Only it was SC court that made it legal and allowed to open back but again government has the power and they may not want it to be legal. Just wondering why, they don’t work on making it legal and regulate if they have that much problem.

Not really, still thousands of people uses Paytm bank account on LBC for trading purpose, they only block the bank accounts which receives money from hacked paytm account and vice versa.They can't literally block for no reasons since Supreme court clearly mentioned that Indians are free to use their bank account for crypto related activities earlier this year.

I have read that Paytm is blocking the bank accounts related to crypto trading. There is no particular bill or rule on the basis of which they are taking such actions. They are working according to their own interests and regulations. So I think it is high time for government to come out with a decision regarding the legal status of Cryptocurrencies so that the people and even banks can be clear about their usage.

Yes, I understand what you mean. Although, the way things are going right now with authorities back to seizing bank accounts. I wouldn't get my hopes up about Bitcoin getting any legality in India. This Bill that they are preparing is in my view a way to reverse the decision of Supreme Court. And something tells me that they are going to ban it altogether. And make a law that anyone who is found anyway related with Bitcoin will be charged.

Yes if we talk about gold, one can sell it for fiat and even it can be exchanged for some other metal. For example jewellers sell it to the customers for INR and they directly interchange gold for other metals like silver with other dealers.It is done in a way that 1kg of Gold is exchanged with some kg's of silver. Similarly Bitcoin can be sold for fiat and even it can be exchanged with some other cryptocurrencies by adjusting the price accordingly like 1 Bitcoin can be exchanged with about 200 Litecoins. I hope I am clear with my point.

You're right. Bitcoin should be treated as a commodity because it doesn't really act as a currency, not for now at-least. The transaction fee is too high(LN might be the answer to that, learning more about it right now)and it is too volatile in nature. And that is what I think the author and I meant. Not to be treated as shares but to be allowed it to be traded on stocks exchange.

And if you think about it some of the commodities are almost equal to currency. Take Gold/Silver for instance. Their value is almost same everywhere, depending on different charges and purity ie but what I mean is one can sell/buy it almost everywhere. Same is with Bitcoin. Even if it is not given the currency status, you'll still be allowed to trade it for whatever you want.

It is happening even now. Some of the place you spend bitcoins at. They don't take bitcoins directly. They use services which convert the bitcoins to fiat at the current price and transfer the money to them for a fee. And once Bitcoin is allowed to be traded in India at stock market. People who don't even understand or know Bitcoin. Can begin accepting it with a service provider in between their clients and themselves.

So, I totally agree with you. That it needs a very clear easy to understand legal status. So, anyone who understands the technology can invest in it, use it, make applications with it, trade it and do it without having to be worried about getting scammed or getting in trouble.

Everyone has a different perspective regarding Bitcoin. Many people wants it to be legalized as a currency, some like you are okay if it is traded as stocks and for some it is like an asset such as gold but the only thing that matters is how the government wants to regulate it.

I want Bitcoin should be used as a currency because that's what it is. A type of digital currency which can be used to make online transactions with no or low  transaction fees but it's decentralized and volatile nature is a strong reason for our government to not legalize it as a currency. Maybe they think that it can affect the value of INR. Moreover in our country, it will be difficult for large part of population to understand the concept of Bitcoin, wallets and their working etc.  

Talking about Bitcoin as a stock. I have never been a part of stock market but the only thing I know is that we buy some shares of a corporation or industry and sell accordingly.Bitcoin does not belong to any particular corporation or Industry so I don't think that it can be treated as shares.( correct me if I am wrong).

There are high chances of Bitcoin to be traded as other Commodities such as gold in our country. Even Subhash Chandra Garg,former finance secretary wants that crypto should be regulated as a commodity and not as a currency. He feels that like other commodities, Bitcoin also has a varying demand and people are responsible for it's value which is true. So it can be regulated as other commodities are being regulated in the country.

I totally agree with you. Lack of knowledge and improper understanding often leads to misconceptions. Government needs to learn about the working of cryptocurrencies,should decide in which form they want to legalize it and should come up with a set of certain rules and regulations accordingly. The basic measures may involve a mandatory KYC for every seller and buyer, proper record of every transaction should be there and proper taxation should be there.Moreover a restriction can be imposed on the amount that a person can trade.For example if a person is new to the exchange he should not be allowed to trade more than a certain amount and with time these restrictions should be removed.In this way only the trusted traders will get connected to the exchange. Instead of banning it completely, government should come up with some solutions to manage Bitcoin and other cryptocurrencies and let it grow in India.

Unfortunately government has the power to make anything legal or illegal as their wish but not going to happen any time soon in my opinion.

I dont think Indian government will regulate bitcoins anytime soon. They set up a committee recently and they suggested that all the all the crypto currencies should be banned in india. Government wants to ban bitcoin while supreme court doesn't.

I think allowing it to be traded as stocks is not really a problem. One would be able to buy/sell it more openly and it will be more regulated and easier to pay tax on it, etc. I don't mind if they make it that. But I do hope that they keep it legal. Bittrex added 7 more countries to its list of countries where it doesn't offer its services anymore, making it a total of 31. And I am happy to see that India is not a part of it, still. And I hope it remains that way.

What government needs is to learn more about it so they become less paranoid of it. And make it more easily accessible to general public and make regulations on how/how-not to use it. That's it. The more open they make it the less it will be used for illegal activities.

Bitcoin should be regulated as legal tender if someone wish bitcoin should be used as currency but if we regulate it as stock then high taxes will be imposed on it.

Crypto currencies related scams are comes under the cyber crimes in India and you can make a complaint if you become victim of such crimes.

Deepak Kapoor, founder of Begin India Think Tank has given a statement regarding the legal status of Bitcoin in India. He said that Bitcoin should be traded as stocks and should not be legalized as a private currency because it will put Indian economy at stake. Further he mentioned that Cryptocurrency-based crimes are still not officially recognized in India and there are no such regulations and a body for managing Bitcoin in India.

Sources-: https://news.bitcoin.com/bitcoin-traded-stock-india/
               https://www.coindesk.com/bitcoin-should-be-regulated-like-stocks-in-india-says-think-tank-founder

What are your views on this statement.Whether Bitcoin should be traded like stocks or it should be considered as a currency? If it is used as a currency then how it can affect the Economy?