Bitcoin Legal In India? Government Decision and Scenarios
- Posted on Apr 5, 2017
The view of the Indian Government on Bitcoin, the top cryptocurrency is awaited eagerly by the users of bitcoin. According to reports, the Indian government is to issue a statement on its stand will come out on April 20, in two weeks-time.
As per reports, an inter-ministerial committee has been appointed to look at the legal issues related to this cryptocurrency.
Decision is unlikely
However, the report also adds that the final decision on the legality of bitcoin in India was unlikely to be finalized at the April 20 meeting. At the present time, the bitcoin is not illegal. One may trade, buy, sell, or mine the cryptocurrency.
This issue came to the fore when a politician raised the issue on March 24 calling for a broader regulation of the cryptocurrency and asking if this was a pyramid ponzi scheme. Of course, there was one who leaked reports saying the government had declared the bitcoin illegal – so much for that false report.
Indian Government is not eager about Bitcoin and cryptocurrencies
Since there is a lethargy among the Indian authorities in declaring the status of the cryptocurrency, the cryptocurrency industry in India has taken on itself to form the Digital Asset and Blockchain Foundation of India (DABFI) to regulate and act as a watchdog. The group wanted a government initiative to teach the common man about the blockchain technology and the bitcoin, but the government is not responding.
India’s central bank, the RBI was not enthusiastic in involving in discussions regarding the cryptocurrency. Most of the industry experts too feel that the government is not going to encourage the use of cryptocurrency. However, seeing that none of the major economies in the world has banned bitcoin, it is unlikely that this will happen in India.
Indian users are ready
The Indian BTC industry was urging the people who matter to make the bitcoin a legal tender. They are on a signature campaign that has seen a positive and enthusiastic response. If the government ruled the bitcoin to be illegal, it would mean that the cryptocurrency industry would have to shut down.
However, if the KYC network for customer data combined with a compliance network to show a meaningful way forward then there could be hope for the cryptocurrency. But, the initiative would have to come from the authorities and the Indian cryptocurrency industry.
So, would the government initiate an action to promote the cryptocurrency? Or would the bitcoins get marching orders? One has to wait until April 20 to know.