Is cryptocurrency legal in india 2020

UAE; Saudi Arabia; US Elections ; Business; World News. Elections. Lok Sabha; Assembly Elections. ET Explains; Sports; Science; India. India plans to introduce a new law banning trade in cryptocurrencies, in the Supreme Court in September and won respite in March

Introduction The history of cryptocurrency can be traced back to the Global Financial Crisis, when financial markets were in deep stress and people were losing faith in them.

During that time, Satoshi Nakamoto, is cryptocurrency legal in india 2020 father of the bitcoin, paved way for the first ever cryptocurrency using the blockchain technology.

In plain English, cryptocurrency is a digital currency, which can be held by an individual in their is cryptocurrency legal in india 2020 wallet.

Regulating cryptocurrency in India

It is essentially best steam 2020 digital representation of value that can be stored and transferred virtually.

No affiliated body issues cryptocurrency and it is not backed by any collateral such as bullion. Also, while traditional currencies can be stored virtually in online accounts, wallets, etccryptocurrencies cannot be stored physically.

Given the differences, regulating cryptocurrency requires a holistic perspective as compared to traditional forms of currency. Despite the above limitations, cryptocurrencies are widely traded internationally because of their potential high profits, leading to is cryptocurrency legal in india 2020 generation for traders.

The transactions involving trade of cryptocurrency works on the pure economic principle tbc009 kringle supply and demand. The greater the demand, the higher the price and vice versa. Given this, traders view cryptocurrency as a viable investment through which they may increase their money significantly.

Although there is cryptocurrency legal in india 2020 not many countries which officially recognise the validity of cryptocurrencies for instance, in Argentina and Canada, cryptocurrencies are considered to be money but not as an official legal tenderthere are a few countries where trading of cryptocurrencies is cryptocurrency legal in india 2020 been permitted and cryptocurrencies are accepted as a legal tender.

Consequently, they could be widely used for carrying out illegal transactions.

This step of restricting Regulated Entities from providing services to is cryptocurrency legal in india 2020 trade attracted much criticism and forced many Indian crypto companies such as Zebpay and Is cryptocurrency legal in india 2020 to wind up their business or move abroad.

In its judgment Internet and Mobile Association of India v Reserve Bank of India, dated 4 Marchthe Supreme Court set aside the Crypto Ban Notification, thereby giving a new lease of life to crypto companies, dealers and exchanges.

However, several other crypto exchanges and traders consider this a grey area and have decided to halt running their operations in India due to the uncertainty.

Cryptocurrency ban in India - Finquery

Some also believe that they may face actions is cryptocurrency legal in india 2020 a ban on carrying out their business in India in the future.

It has also been reported recently that the government is holding consultations is cryptocurrency legal in india 2020 the Is cryptocurrency legal in india 2020 of Law and Justice, Ministry of Electronics and Information Technology and the RBI about introducing a framework of legislation which will formally end cryptocurrency trading in India.

However, no official announcement has yet been made. https://idtovar.ru/2020/mine-ethereum-on-android-2020.html

How can cryptocurrency is cryptocurrency legal in india 2020 be regulated Whereas, to date, cryptocurrencies are unregulated in India, historically, the RBI has banned dealing in cryptocurrencies and, therefore, cryptocurrency stakeholders are advocating for regulating the cryptocurrency realm.

The RBI may rely on the blockchain infrastructure to create is cryptocurrency legal in india 2020 regulatory presence in the cryptospace.

It may also consider issuing licences to crypto exchanges which may only be issued following an appropriate scrutiny of records and after meeting necessary compliance requirements.

Also, a framework inter alia providing for submission of transaction records to the RBI within a stipulated timeframe may be put in place which will not only ensure safety of transactions and minimise illicit use, but also increase customer protection.

The SEBI may also regulate the trading aspects of crypto transactions.

Bitcoin illegal in India?

This will is cryptocurrency legal in india 2020 the confidence of traders, as they will be assured that is cryptocurrency legal in india 2020 proper due diligence of crypto is cryptocurrency legal in india 2020 is being conducted, therefore decreasing chances of any embezzlement in such transactions.

Furthermore, initial coin offerings just like initial public offerings IPOs may also be offered by companies, through which they may be permitted to raise funds by issuing tokens in exchange for cryptocurrency.

This entire process can be monitored by SEBI and refund mechanism on delivery failure can be established for consumer and investor protection. Nevertheless, link cryptocurrency start-ups are optimistic about the tremendous potential and future of cryptocurrency in India, as they are making continuous representations before government not to impose a blanket ban.

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Instead, the government should focus on harnessing its benefits and the underlying technology. For regulating this area, a risk-based framework which may inter alia address issues pertaining to acceptance as legal tender, security is cryptocurrency legal in india 2020, tax, financial markets, data storage and privacy, etc shall be developed after is cryptocurrency legal in india 2020 views and comments from stakeholders and market participants.

For practical reasons, such a framework may be implemented in phases. If this becomes a reality, cryptocurrency will have a bright future in India, and will continue to evolve and advance over the next few years.

Herelast accessed 5 September Similar topics.

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