Is bitcoin banned in India? After the guidelines of RBI, what will be the position of bitcoin? So, let's find out.
First of all, neither India government nor RBI considers bitcoin as legal tender in India. Mr. Jaitley renewed India's finance minister has clearly said that Indian government and RBI made it public that Bitcoin or any other cryptocurrencies are not legal tenders in India and therefore the protection of the currency is not available.
He said: “The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system”.
Thus, the government does not provide any protection or guarantees you to provide the value against the bitcoin as it does with actual Indian currency. The government will explore the use of blockchain technology proactively for guiding in the digital economy.
Sometime back government also ban the transaction related to buying or selling of bitcoin or any other cryptocurrencies through credit cards. Because the government doesn't want people to invest credited money into such currencies as the government is not responsible for any loses, if any.
"Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs.", RBI stated on April 05,2018.
RBI also asked banks to not to involve in any transactions related to bitcoin exchange such as Zabpay or Coinsecure. It means users are not allowed use their bank money for such transaction wheater in buying or withdrawing money.
Ajeet Khurana, head of the Blockchain and Cryptocurrency Committee of India (BACC), has tried to clarify more about the statement made by the Indian Finance minister.
In an interview with Your Story, he said: “The payments system includes a lot of things like the settlement mechanism, and the banking system. In recent times, digital wallets and other payment mechanisms have been added to the entire scenario.
“What the Finance Minister might be saying is that cryptocurrency is not considered to be a part of these payment systems.
“Similarly, gold is not part of a payment system, but people still barter assets like gold for goods, as long as both parties record the transaction. It is an asset barter transaction.
“There is a little subjectivity on the matter. Can an individual swap cryptocurrency for another cryptocurrency?
“We have to wait for clarification on what the Finance Minister meant when he mentioned payment system.”
According to Sathvik Vishwanath, founder of Indian bitcoin platform Unocoin.
He told the Financial Times that Bitcoin trading has surged in recent months, adding: "Early last year we were gaining about 10,000 new users each month.
“In December it was about 7,000 to 8,000 each day."
It may cause a drastic crash in the price of bitcoin if the digital currency seems to face the BAN.
First of all, neither India government nor RBI considers bitcoin as legal tender in India. Mr. Jaitley renewed India's finance minister has clearly said that Indian government and RBI made it public that Bitcoin or any other cryptocurrencies are not legal tenders in India and therefore the protection of the currency is not available.
He said: “The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system”.
Thus, the government does not provide any protection or guarantees you to provide the value against the bitcoin as it does with actual Indian currency. The government will explore the use of blockchain technology proactively for guiding in the digital economy.
Sometime back government also ban the transaction related to buying or selling of bitcoin or any other cryptocurrencies through credit cards. Because the government doesn't want people to invest credited money into such currencies as the government is not responsible for any loses, if any.
"Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs.", RBI stated on April 05,2018.
RBI also asked banks to not to involve in any transactions related to bitcoin exchange such as Zabpay or Coinsecure. It means users are not allowed use their bank money for such transaction wheater in buying or withdrawing money.
Is Bitcoin ban in India?
Well, the simply the answer is NO.Ajeet Khurana, head of the Blockchain and Cryptocurrency Committee of India (BACC), has tried to clarify more about the statement made by the Indian Finance minister.
In an interview with Your Story, he said: “The payments system includes a lot of things like the settlement mechanism, and the banking system. In recent times, digital wallets and other payment mechanisms have been added to the entire scenario.
“What the Finance Minister might be saying is that cryptocurrency is not considered to be a part of these payment systems.
“Similarly, gold is not part of a payment system, but people still barter assets like gold for goods, as long as both parties record the transaction. It is an asset barter transaction.
“There is a little subjectivity on the matter. Can an individual swap cryptocurrency for another cryptocurrency?
“We have to wait for clarification on what the Finance Minister meant when he mentioned payment system.”
 |
| Source:- investorplace |
Bitcoin users in India
Bitcoin price in India's exchange is always been higher than internationally. The main reason behind this can be because of India's capital system which makes it difficult for citizens to buy BTC aboard.According to Sathvik Vishwanath, founder of Indian bitcoin platform Unocoin.
He told the Financial Times that Bitcoin trading has surged in recent months, adding: "Early last year we were gaining about 10,000 new users each month.
“In December it was about 7,000 to 8,000 each day."
It may cause a drastic crash in the price of bitcoin if the digital currency seems to face the BAN.
No comments:
Post a Comment