Blog Details

Author - Associate Runa Jasia

Cryptocurrencies have gained popularity all around the world. It is designed in a way that it is free from any form of manipulation or control from any government policies or interference. This field is growing day by day rapidly. Few of the popular cryptocurrencies are:

1.    Bitcoin

2.    Dash

3.    Bitcoin cash

4.    Zcash

5.    Litecoin

Cryptocurrencies are peer-to-peer electronic cash system.  It has no central entity. Crypto means a secret or concealed. So these currencies are secured by strong cryptography. 

It uses robust encryption methods and codes to secure payment of money and all the transactions related to the amount. It verifies the transaction in a very legit way. For any person to use cryptocurrencies, it can feel complicated during the first time. It is better to take help of an experienced person.

Bitcoin is one of the most popular cryptocurrencies around the whole world. The founder of Bitcoin is Satoshi Nakamoto from Japan in 2009. 

So before using these digital cryptocurrencies, one has to create a cryptocurrency wallet. All the transactions take place through this wallet. There are various ranges of wallets as per the choice. Balance and transactions can be viewed through this wallet. A person needs to sign up for using this wallet. It can be downloaded via the official website. It is a secure digital wallet that is used to do all incoming and outgoing transactions of coins.

What is the legal status of Bitcoin in India?

Currently, the legal status of Bitcoin is not defined in India. It is not even legal and not yet illegal. Trading with these virtual currencies is not against the law for the moment.

Its status is pending. In the year 2017, Finance Minister Arun Jaitley announced that the country would not recognize any cryptocurrencies as legal tender. But no law is formed regarding Bitcoin in India. Everyone is still confused; it is legal or illegal. There is no final decision made by the supreme court of India. On the other side, the Indian Government is still working on the regulations to be formed regarding Cryptocurrencies. The work is in progress to create and develop valid and official cryptocurrency regulations that will apply to the whole of the country. The Ministry of Finance has already set a panel for his purpose Subhash Chandra Garg, the Secretary of Economic Affairs, to draft the regulation. Discussions are going on, and maybe very soon, official rules will be published soon. As far as this matter is a concern, Cryptocurrencies in India are legal. There is no formal official declaration by the Government of India till date.

According to the provisions of the RBI Act and the Coinage Act, currently, no specific statement is a valid match for these virtual currencies. It is not considered as money or as currency. It is not a legal payment system if this Act is considered. But nobody can claim someone to the court for using Bitcoin. It has no legal status in India. So if a person uses Bitcoin, it is not against the law till date. Current Government of India and India’s central bank made it clear that they are not interested in making these virtual currencies as legal. Bitcoin is in the grey zone. There are no regulations or rules for using Bitcoin. The income tax department of India is sending out legal notices for many thousands of investors who gained from the virtual cryptocurrency and did not pay any taxes on their profits. The Government of India has set up a panel for suggesting, creating, and drafting regulations for these virtual cryptocurrencies. They will help to develop a specific legal law for the current legal structure. Illegal transactions can also be done via virtual cryptocurrencies. Bitcoin cannot be used to do any financial transaction in India. Currently, mining of bitcoins can be done, but transactions using bitcoins should not be done. Any business operations cannot be done using bitcoins. Government of India does not show any interest in making it legal so far.

According to the statements provided, the Indian Government has not been very much happy about the growing business of bitcoins in India. In the future, there will be a legal statement or law regarding the transactions of virtual cryptocurrency. Interest in bitcoins has increased in India day by day. Bitcoin is the first cryptocurrency in the world. People found it useful and easy to use. Financial groups are not allowed to provide any services in regards to any form of virtual cryptocurrencies in India. It is a risk-taking payment system, but it is not declared as legal or illegal. From time to time, India Government reminded all the people who use virtual cryptocurrency as a risk. Currently, it is not considered legal, but there is no law framed for it.