Bitcoins ?? Is it illegal in India??
RBI has come up with a Caution notice for public saying it may lead to violation of anti money laundering act and other regulations relating to terror financing
Bitcoins price rose from $13 to $1124 within a short span of 10 months. When china banned bitcoins in their country, the bitcoins price saw a steep fall from Rs 74,628 to Rs 42,737 within november to december
RBI also fears that since there is no asset backing these bitcoins, too much of speculation may lead to unregulated transactions therby affecting the customers.
Currently, it is not clear as to whether it is illegal to trade in bitcoins as per any law prevailing in india. Nor the governemnt has come up with any notification banning bitcoins
We may have to see whether RBI will ban bitcoins which had created lot of hype and hoopla in the Virtual Exchange..
Posted 3 years ago by Vedanta Deshika
India is at 16th Position in using Bitcoins. Bitcoins are becoming amajor currency for online transactions.
It is very difficult to track the buyer and incase transaction fails its more difficult to recover the bitcoins paid.
Bitcoins lacks these points to establish itself as a full fledged currency:
- No regulatory body to control the currency.
- No Assets backing, Bitcoins are mined through some algorithams.
- No transaction trails, difficult to find who received the coins. Incase of transactions fails, very difficult or next to inpossible to track the buyer.
- None of the government agencies provide legal support incase transactions gone wrong.
- Not recognised by any country.
But it can change the way we use money if gets support by any strong government agency say something like RBI. Reserve Bank of India is more concerned about absence of Asset backing and transaction trail. Also it specified that security is also a big concern as algorithams were hacked in past.
Posted 3 years ago by CA Pulkit Sharma
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