Many of you have heard of bitcoins and the recently booming Dogecoins. What are you? Are They Legal in India? Find out by reading on.
What is cryptocurrency?
Cryptocurrencies are mined with supercomputers …
Cryptocurrency is just digital money. It’s considered safer than real money. This is because cryptocurrency uses cryptography to secure their transactions. Cryptography is a method of turning readable data into complex codes that are difficult to crack. Cryptocurrencies are divided into digital currencies, alternative currencies and virtual currencies.
The first cryptocurrency was Bitcoin, which was created in 2009. Since then there have been many cryptocurrencies namely Litecoin, Ethereum, Zcash, Dash, Ripple, Dogecoin etc. In India’s attempt to go cashless, cryptocurrencies have become popular and much more and more and more people are investing in the bare minimum of digital currency.
Is It Legal In India?
Cryptocurrencies stand unhindered and unregulated in the Indian market
The simple answer to the above question is no. The slight caveat is that it is not regulated in India. No set rules, regulations or guidelines have been established for resolving disputes that may arise when dealing with cryptocurrencies. Crypto transactions are therefore associated with their own risks.
At the height of the investor boom in 2017, the Treasury Department issued a statement in 2018 that said:
“The government does not regard cryptocurrencies as“ legal tender or coin ”and will take all measures to prevent the use of these crypto assets in funding“ illegitimate activities ”or part of the payment system. The government will proactively investigate the use of blockchain technology for security in the digital economy. “
What we can take out of the above statement is that the government is not against the use of cryptocurrency, it just wants to prevent its misuse with the help of blockchain technology.
In an interview with Financial Express, Nischal Shetty, CEO of WazirX, stated that Bitcoin is the alternative asset class. It has weathered two global recessions.
He stated, “Like gold, cryptocurrencies are viewed as a hedge to protect the fiat portfolio and their value as a hedge lies in its anti-inflation properties. Traditionally, investors used gold to hedge against the volatility of stocks. But today, crypto is slowly becoming a mainstream asset class, especially among millennials. In addition, it is perfectly legal to buy Bitcoin in India. There is no law prohibiting Indians from buying / selling cryptocurrencies in India. “
Also read: Will the world shift to cryptocurrency since Musk invested $ 1.5 billion in bitcoin?
Neeraj Dubey, partner, corporate law practice at Singh & Associates, told FE online: “Pursuant to Section 26 of the RBI Act, any banknote is legal tender in any location in India for payment or for the account of the amount stated therein and is administered by the central government guaranteed. “The virtual currency is not guaranteed by the central government. In order for a virtual currency to be declared as legal tender, it must be expressly guaranteed by the central government. In this case, the parties are legally obliged to accept this as a means of payment. Privately issued cryptocurrencies would therefore not be safe. “
I have presented the cryptocurrency testimonials as an exciting prospect in India and the legal pitfalls of it. Let us know your comments below.
Image sources: Google Images
Sources: Financial Express, Clear Tax India, Economic Times
Find the blogger: Shouvonik Bose
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