The situation of digital currencies in India

The situation of digital currencies in India

The situation of digital currencies in India
The situation of digital currencies in India

The current state of digital currencies in India is being legislated.

Continuing to examine the situation of digital currencies in different countries, we now come to the vast and populous country of India. India is a country in Asia and a country in South Asia known as the Wonderland.

In early 2018, the Indian government announced that digital currencies such as bitcoin were not legal tender in India. While the government has not yet established a legal framework for digital currencies, the Bank of India Reserve warns against their use and has issued three declarations stating that “users, holders and traders of these currencies are at risk, stating no license or authority to any entity.” “Or a company has not been hired to operate such programs or transactions.”
Most recently, on April 6, 2018, the Reserve Bank of India issued a statement urging banks, lenders and other legal financial institutions to refrain from ‘trading in virtual currencies’, stating that “given the risks involved, this decision It is assumed that entities regulated by the Reserve Bank should not trade in virtual currencies or provide services to facilitate individuals or entities that trade in virtual currencies. Such services include keeping accounts, registering, buying and selling, depositing, bank transfers, lending on virtual tokens, accepting them as collateral, opening accounts of exchange offices that trade in virtual currencies and transferring and receiving money in accounts. Buy / sell virtual currencies. In addition, the Reserve Bank of India stated that legal entities currently providing such services must cease operations within three months from the date of this directive. However, Vice President B. At a policy press conference, Pi Konongo recognized that China’s blockchain technology, or distributed general office technology that forms the basis of virtual currencies, has potential benefits for entering the financial sector and increasing the efficiency of the financial system. He said that the Reserve Bank of India has set up an inter-agency committee in the Reserve Bank of India to prepare a report and examine the feasibility and desirability of issuing digital currency by the central bank.

According to the Hindustani Times, reports in early 2018 indicated that the government was drafting a law regulating the sale and purchase of digital currencies in India and had set up a committee to follow the process quickly. A government official said: “The government has raised two main concerns that the law will address: the source of the money used to buy and sell digital currencies; “Legislation of virtual currency exchanges to protect ordinary people.”
An interdisciplinary committee chaired by the Special Secretary (Economic Affairs) was established in April 2017 “to review the existing framework for virtual currencies”. The committee had nine members, including representatives from the Ministry of Economic Affairs, the Financial Services Authority, the Revenue Office, the Ministry of Interior, the Ministry of Electronics and Information Technology, the Reserve Bank of India, the National Transformation Institute of India (NITI Aayog) and the State Bank of India. The role of this committee is to:
1) Assess the current state of virtual currencies in India and globally;
2) Examine the existing legal structures regarding virtual currencies;
3) Propose necessary measures to deal with the problems caused by virtual currencies, including issues related to consumer protection, money laundering and the like;
4) Check any other issues related to virtual currencies that may be related to it.
On August 7, 2017, Business Line announced that the committee had submitted its report, but the details of the report were not made public.
On December 29, 2017, the Indian Ministry of Finance issued a press release warning investors about the real and serious risks of buying and selling digital currencies such as bitcoin, saying, “Virtual currency investments are similar to Panzi plans.” According to the news agency on February 1, 2018, the Minister of Finance told the legislators of the parliament that “the government does not consider virtual currencies as currency and takes necessary measures to prevent the use of this cryptocurrency, which may be used to finance illegal activities or as part of the system.” Will make the payment used; But the government will be proactive in pursuing the use of Chinese blockchain technology to achieve a digital economy.
On November 13, 2017, the Supreme Court, in accordance with Article 32 of the Constitution, accepted the public interest petition against the Union of India and issued a notice to the Minister of Finance, the Minister of Justice, the Minister of Electronics and Information Technology, the Board of Exchanges and Securities of India and the Reserve Bank of India. کرد. The lawsuit seeks to establish “a legal framework for cryptocurrencies and demand that virtual currency be held accountable to the Treasury.”
The Supreme Court had previously accepted a petition in July 2017 seeking to find “a similar kind of legal framework”:
A public interest lawsuit was filed under Article 32 of the Constitution against the Union of India, the Ministry of Finance and the Reserve Bank of India for the use and trade of bitcoins, light coins, atrium and the like (Civil Petition Document No. 406 in 2017). On July 14, 2017, the Supreme Court ordered the Reserve Bank of India and other ministries to state their position and pass a bill in this regard before deciding on a public interest petition.


A country in South Asia

Population: 1,354,051,854 people
Area: 3,166,944 square kilometers
Internet penetration rate: 462,124,989 people
National currency: Indian rupee
Type of government: Republic
President: Ram Nath Kovind
Capital: New Delhi
Language: MORE
Economic growth: 7.10%
Digital Currency Legislation: Legislating
Digital Currency Tax: Prohibited
Digital currency payments: prohibited
National Digital Currency: Prohibited
ICO: Allowed but under strict rules
Anti-Money Laundering Laws for Crypto: Prohibited


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