Is Bitcoin Illegal In India?
Even though India is one of the most technologically advanced countries in the world, cryptocurrencies still receive bad looks. Understand why:
India, located in South Asia, is the seventh largest and the second most populous country in the world, reaching 1,3 billion people. The country’s cuisine and performing arts industry are also notorious: is estimated that South India attracts more than 75% of national film revenue and make direct competition with occidental productions.
When it comes to the cryptocurrency ecosystem, however, things can be a little confusing. In short terms, Bitcoin is not illegal – neither completely legal – in India. The government is really concerned about fraudulent schemes, which can result in a sudden crash and an investment bubble that could expose investors.
Even though the Indian government doesn’t look at cryptocurrencies with positive eyes, investors are looking up to them.
Bitcoin in India: legal or illegal?
According to India’s finance ministry, Bitcoin or any other cryptocurrency are not backed by any kind of asset and have “no intrinsic value” whatsoever. The country’s federal reserve made clear that isn’t comfortable with currencies based on the blockchain due to its “fraudulent nature” and no regulation laws.
It’s not easy to gain the government’s support (and the latest downfall that dropped the BTC price doesn’t make it any easier). But, it’ also not hard to buy, sell or trade it at online platforms.
To clear it up: Bitcoin is not illegal in India but is also not 100% legal on common, daily transactions, because it can’t compete with legal tender. You can’t purchase your own Bitcoin and store them in a private digital waller, but don’t even think about replacing it with fiat currencies!
Will cryptocurrencies become 100% legal?
While Dubai is on the vanguard by becoming the first blockchain-based city of the world, the Reserve Bank of India (RBI), in April 2018, decided to place a ban on banks dealing with organizations related to any cryptocurrency. The institution also issued a public warning about the “perils” of doing business with currencies.
Even though the government is attempting to slow down the blockchain movement, India still ranks among the top five countries of the world with the biggest share of cryptocurrency held. Year by year, new blockchain-based startups are popping and growing.
Due to these startups’ operations, the acceptance of the crypto-technology in India would be bigger – if it wasn’t for the government’s views on it. It only means that Bitcoin is going to take time to be widely accepted as an exchange currency.
What are your thoughts? Do you think India is missing economical opportunities by not legalizing Bitcoin? Let us know at BitClub Network’s official page on Facebook!