Bitcoin Remains Legal In India - Regulations Coming

Along with China, India is one of the more stern countries when it comes to the legal nature of cryptocurrencies. However, according to Anurag Thakur, India’s Minister of State for Finance & Corporate Affairs, the coin? remains legal.

In both China and India, it is not so much that negative sentiment is problematic, more that there is quite a lot of ambiguity when it comes to the status of cryptocurrency? and blockchain? within the nations. 

India has been flirting with the idea of banning Bitcoin?; however, these recent comments from their Minister of State for Finance & Corporate Affairs seem to point to a more positive potential outcome. 

 Working on regulations

Thakur was responding to a direct request for clarity on the legal nature of Bitcoin? in India; he firmly denied that it was illegal. The reason for the demand on transparency came after an alleged draft law which surfaced last week that called for a blanket ban.

Thakur’s comments, however, contradict this as he also added that regulation to manage and implement the use of cryptocurrencies in India was coming. 

“No, Sir,” Thakur responded when faced with the question if the government “has prohibited cryptocurrency?.”

“Taking note of the issue, the Government has constituted an Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary (EA). The IMC has submitted the Report to the Government,” he continued.

Currently no laws

While Bitcoin? is not illegal in India, it is also not governed or regulated in any manner either; equally concerning. However, Thakur’s tone is cautiously optimistic as he mentions that there is work being done on regulations. 

Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws,” the minister added.

“Similarly, police/courts take action on IPC offenses. Further, in view of the risks and dangers associated with cryptocurrencies, Government and RBI have been issuing advisories, press releases, and circulars to the public.”

A huge market

India is a massive potential market for cryptocurrencies and one that is well suited to adopting a digital currency. Because of the vast number of people who live below the poverty line and are mostly unbanked, Bitcoin? offers potential financial freedom. 

However, the unfriendly stance from the government thus far has forced several cryptocurrency? exchanges to shut and the interest for blockchain? innovation to fall away. However, the implementation of any rules and regulation may provide enough of a guideline to see a fresh influx of interest.