Crypto Current Affairs—Is Bitcoin Legal Tender in India?
Indian government is yet to consider Bitcoin as a legal tender. Under the current framework you can buy and sell virtual currencies but the government hasn't made any official statement saying that says it is legal to use it. Any news to this effect that you may have read anywhere is essentially incorrect. The most that has happened in the past few months is that the Indian government is considering a regulatory framework around Bitcoin and cryptocurrencies in general.
It's in a grey area currently and that's the truth.
Refer to this URL for more information on Bitcoin's legal status in India: https://cis-india.org/internet-governance/bitcoin-legal-regulation-india
It's no doubt that India has played a small role in driving up the BTC prices ever since demonetisation of Indian currency notes in Nov, 2016. Even today owing to devaluation of the rupee against BTC, the prices are generally on the higher side in India.
Many members of the Indian parliament are largely clueless about the nature of cryptocurrencies and their use. India is a financial risk-averse country with respect to it's current monetary policies, which makes it difficult to implement a pro-crypto policy in the short-term.
However, the Indian government recently invited public opinion on Bitcoin and other cryptocurrencies. Many Indians used this opportunity to express their desire to make BTC part of the everyday financial systems. But, reports such as 'Bitcoin from now on is considered fully legal' can cause confusion. It might build up hype amongst Indian users but unfortunately our market and regulatory framework is still at a nascent stage for mass adoption of Bitcoins.
We are far from seeing BTC as legal tender in India and it's highly unlikely that we'll see that happen in the near future. At best, we can expect to see a framework that allows the government to form reasonable laws for taxing the public on any capital gains, personal income or perhaps a corporate income tax for any BTC transactions or income generated through BTC/INR trades.
Currently there are no specific taxation laws that determines how to file your taxes when you are dealing in cryptocurrencies and every auditor is clueless about this aspect.
Framework might be built under the Indian Foreign Exchange Management Act to curb use of the cryptocurrencies as well. But, fortunately the government realizes that it cannot stop it's people from using Bitcoins. This might actually drive them to make a pro-crypto policy that can yield positive economic results in the long run.
The current official stance of the Indian government is that they have repeatedly cautioned everyone against use of cryptocurrencies such as Bitcoin and it is largely viewed with suspicion as it is beyond the 'control of the government's monetary policies.'
Let us not jump the gun on Indian government's monetary policies around Bitcoin. It would be wise to remember that Indian government monetary policies take years to form shape.
Even as a Indian business owner has begun accepting Bitcoins at his restaurant in India, we are far from seeing it as a legal tender which anyone can buy/sell groceries with!
Personally, I would like see the Indian government to rope in Indian Bitcoin exchanges or experts like Andreas M. Antonopoulos when forming their policies that should ideally have a positive impact on our economy in the long run.
But my expectations from my country's government aren't nearly as high!
1st Image: Pixabay
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So you could say that posts like these are really confusing and can get Indian users in trouble?
https://steemit.com/bitcoin/@kingscrown/bitcoin-officialy-legal-in-india
It could as we need users who understand the technology at basic level to use it in India instead of simply hopping on the hype train and potentially risk their finances.
It is not legel yet. I think it will legel in near futur but gov. will need some tym..
U see indian btc exchange ZEBPAY has more customer then total nm of people using btc apps in korea.
And in the past few mnths there is regualr increase in demands of btc in india
That's incredible when you think about it!
Certainly Bitcoin and crypto's are still "too technical" for the average person. We really need to help it become more user friendly for mass adoption.
absolutely!
No, I don't agree with that. As I am an Indian, there is no say from the Govt. side to make bitcoin legal. But it's not illegal also.
It's not in use for general trade and not accepted in shops etc. (unlike in Japan)
Indian Govt. is little slow and thoughtful regarding online trade, even some forex trading is illegal in India. Also online payment systems like Paypal are not fully and smoothly functional in India.
We hope GST and other new financial evolutions will pump the status of online trading and bitcoins in India in near future. :)
That's true man!
People have the right to write whatever they want, but the Steem community should be wise to it and not upvote misinformation to a thousand dollars.
¯_(ツ)_/¯
Hahah! Absolutely right dude! Well said! Steemit community needs to pay attention to who they vote and why!
The first country that ok's their banks to directly trade bitcoin will be the big winner. And it will bring bitcoin to the mainstream
True that. I hope things change soon!
Yes, correctly said.
In India it is yet to be decided whether Bitcoin and other crypto currencies will be a legal tender or not. The Govt. has not said anything about that, still cryptocurrency trading is being done in our country.
The new govt. of BJP is focussing on IT sector and technological advancement. Govt. may do something about it in near future if other big countries allow bitcoins legally.
It is to be noted that Japan has already made Bitcoins legal in his country.
BTW great article @firepower
Didn't know you are an Indian. :p :D
Revised Tax in Effect From Today In Japan, Lifts the 8% Consumption Tax on Bitcoin making it more easier and cheaper to be traded. Hopefully India will soon legalize cryptocurrencies, but currently also it's not illegal to trade them.
Yep! :)
The last thing I need in this world is a Goods and Service Tax applied on Bitcoins 😓
ha, ha. Just work the work my friend and get high with cryptocurrencies and it will not even bother you about paying taxes because you have these currencies bathing in like a dapper.
True that! :)
It will come most likely! Government will seize every opportunity to make money out of this and make our lives miserable!
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Thank you so much. Glad you liked it :)
U are welcome, @firepower plzz visit my blog and give me an Upvote
This comment has received a 0.08 % upvote from @booster thanks to: @hamzaoui.
This comment has received a 0.04 % upvote from @booster thanks to: @hamzaoui.
Hope to expect good news, in india you never know :-D
Yah! Hoping the same :)
Thanks for sharing.
Upvoted and following :)
Thank you :)
Sooner or later they have to accept trade in terms of crypto currency's. Though they are trying to gain inputs from experts and understanding how to impose tax but due to GST I think they can't do that.
You never know. Only time will tell.
At first the Indian government was at war with Bitcoin! Now the government is slowly letting bitcoin become more adopted.... That is a good thing mates :)
That is good to hear. No country would want to be left behind in the wilderness. How will the make growth if they don't pick up a baton and run along with the other countries?
True! We are hoping to get there soon. ;)
It is good indeed! :D
Discussion is going on and I believe that India will take a positive step however Indian Govt. fearing huge amount of money will go out of the country if people starts trading in BITCOIN or CRYPTOCURRENCY.
Let's just wait and watch!