Topic: Will Bitcoins ever be legal in India ? (Read 213 times)

RBI has banned cryptocurrency in India and has instructed banks to stop providing services to entities dealing in cryptocurrency. Moreover, RBI intends to launch its own version of centralized digital Indian Rupee based on the blockchain. The government cannot regulate decentralized cryptocurrencies and has come up with this idea to cope up with the ban.

One cannot deny the fact that the Indian population is also lured towards investing in cryptocurrencies. The ban might not be able to stop cryptocurrency dealing completely but in fact, create a huge underground market and increase over the counter dealing of cryptocurrency.

In the future, the government might think of bringing cryptocurrencies under regulation through licensing. So it's entirely up to one to hold their cryptocurrency or to sell it for the profits they can realize at the moment.

Primarily Bitcoin among all the cryptocurrencies was introduced as a solution against the current problems the established economy faces, such as inflation, scalability, income gap etc.

So to think in a way, it’s a currency of anti-establishment and in a sense, challenges the government-backed currencies. And if we think in these lines, it's not a surprise that governments around the world including India are answering the rise of cryptocurrency by imposing bans.

The main arguments in doing so they put -

Cryptocurrencies are very difficult to control legally
People might store it as unaccounted assets
Although it’s true that cryptocurrencies fundamentally provide anonymity but in a country like India where a large sum of people uses platforms (ZebPay, KuCoin) that offer you to buy and sell cryptocurrencies through rupee and to do so, a customer has to register and provide their IDs such as Aadhar Card and PAN Card. Doing this allows the platform to keep a record of all the transactions of customers and as an authority, RBI and other financial institution can check these records at any time they want.

So, in my eyes, the decision to ban cryptocurrency trading in India seems like a decision taken under the hazy understanding of it.

Recently a few NGOs came together to challenge the RBI’s decision. They filed an affidavit against the ban. And the court is hearing the argument from both the sides.

But just a few days ago RBI urged the Supreme Court to discard the affidavit entirely saying -

“The impugned circular and the impugned statement neither violate the right to equality guaranteed under Article 14 or the right to trade and business guaranteed under Article 19 of the Constitution…The petitioner cannot seek to exercise the extraordinary jurisdiction of this Honorable Court to avail a right which they do not have. The impugned circular and the impugned statement have been issued in a manner that is consistent with the powers conferred on the RBI by the law and the same are legal and valid.”

And let me tell you, the NGOs have all the legal rights to challenge the RBIs decision and the bank's opposition here seems doubtful of their own action. If they are so sure about their imposition, why are they trying to stop the hearing?

On the other hand, another government agency SEBI sent some of its members recently to the UK, Switzerland and Japan to study the legalities of cryptocurrency exchanges and trading.

These contradictory actions of two of the main financial bodies of the country show a lack of understanding around the issue of Bitcoin and cryptocurrency.

Hi
There is no any official announcement I think.

I think bitcoin will be legal because every nation accept bitcoin

This is the big problem in India because India always take time to adapting any new technology compared to other countries. Because of Indian political but surely Indian government will be adapt blockchain Technology and other Crypto currency also.

Absolutely it will take minimum one decade to to bring some regulations or legalize.Something which cannot be controlled or which does not have physical identity is hard to control.Moreover government will never give financial freedom to its mass.There are pros and cons to everything so seeing the current scenario it will only be lingering and adjournment everyday.We all are aware of how much un-accounted money had been present in the past and still now so until and unless every tiny bit of those had been put to some purpose it will go on and on.The only thing I am missing is that mining operations are now-a days not much profitable but soon we will find some way or the other for nice trading,just like good old times.
happy trading all.Enjoy crypto market.

May not be in next one decade.

agreed dont expect anything here.... and btc will not be legal here .. may be after 5 or 10 yrs we can see anything but for now nothing will happen here.

I suppose, this link has old news. Anyone has an idea when is the next hearing scheduled in Supreme Court?

Till GOI takes a decision its difficult to say what will happen. Court cases generally take a lot of time.  Follow this news to get more information on court case.

https://news.bitcoin.com/rbi-ban-hearing-delayed-indian-supreme-court-crypto/

You are right brother what you mentioned points in your posts that will show how world going see bitcoin as a positive and the blockchain Technology adaptation but India have to learn from them how to used blockchain Technology or any advance technology countries like USA China Japan and more countries are adopting the technology very beginning.

Legalizing bitcoin is the least of the worries Indian government has. The section of populace involved is also not going to be the activist type. I think cryptocurrencies and bitcoin would go down the way most tabooed subjects go. They have no legal definition or acceptance but they aren't illegal either.

The oldest profession is also defined in similar ambiguous terms in India. Prostitution, per se is not a crime but "pimping" certainly is. So all you people selling your own time and services (bodies) amongst each other in crypto will not have any problem.
But the organizers, companies that aim to profit from crytpo (Like the pimps; Sorry for the brutal analogy..) will most certainly not be able to do so.

Exactly you are right brother we can't expect too much. I think indian government don't know the bengits of cryptocurrency. Maybe they just want to say it's illegal without research about its benefits.

In my opinion nothing is going to happen in India. Its India, dont expect too much. Yes one thing you can expect . That is the  court case will be dragged unnecessary for a long period.

Personally I don't think bitcoin will be legal in india anytime in future because of the international relations which india have almost majority of the countries don't think bitcoin as the most legal way of transactions so since india has been on the safe side for many time so it's gonna do the same play which other countries like china, north korea , russia are playing .

After the recent developments in the world of cryptocurrencies especially bitcoins in specific we have come to see a drastic change in the mindset of people towards the adoption of cryptocurrencies and the potential it holds. For example a dealership in houston texas is accepting bitcoins as a means of payment for the purchase of Rolls Royce cars and a major store in Japan is accepting bitcoins. But amidst all this what about India what does India have to say about all this ?
Well it seems to me that India might be late to the party but I strongly do believe India will eventually adopt bitcoins and this is more likely to happen if the verdict of the supreme court is in the favour of cryptocurrecnies for which the verdict has been postponed to Setember 17th.
What do you guys feel about this ?