Bitcoin Forum

The Indian government is in final stages to present the crypto bill in the parliament and there were rumours that government will impose a complete ban on trading of cryptocurrencies making it criminal offence.But however Finance minister Nirmala Sitaraman has given hints that government is in talks with RBI to regulate the usage of cryptocurrencies in the country.The supreme court has also rejected RBI petition in 2017 to ban the cryptos.


Hints to regulate crypto in India (https://www.livemint.com/market/cryptocurrency/fms-push-for-calibrated-approach-on-crypto-trading-calms-frayed-nerves/amp-11615112421872.html)

This announcement is still not public but just a assumption.So it will be great news if it happens for all the crypto users there.What are your thoughts on this?

I hope that's a real news and Indian Authority is taking Crypto positively. Whatever I heard on the forum were negative so far. Good luck to all Indian Bitcoiners.

PS: India is a large country and considering population in there - having a positive eye on crypto is very helpful for crypto community.

The can’t just ban this technology and put harsh punishments to users, they treated Bitcoin like illegal drugs like this with their current regulations. I hope their authorities will expand their knowledge and understand this technology very will or educate themselves I know they can do better.

Why are there so many reports on India and the legal status of Bitcoin in that country? I do not think that India is one of the countries that make decisions, but rather follow it. So if the United States or the United Kingdom decided to put a legal limit on Bitcoin, those countries will make the same claim.

Covid 19 pandemic will force some countries to regulate digital currencies to obtain more money from taxes and India is one of the countries affected by Covid19

I read the same news on Cointelegraph (https://cointelegraph.com/news/no-crypto-ban-in-india-finance-minister-predicts-very-calibrated-stance) today.

I am glad that a rethink is taking place in India. A few weeks ago I was commenting in a thread here about the fact that India wants to completely ban Bitcoin and cryptos. Now, on closer inspection, they have probably realized that they cannot do this at all and are trying to regulate it instead. You could also say it is a capitulation and a victory for decentralized payment systems.

I am reiterating the same statement as I had said in another thread recently,

https://bitcointalk.org/index.php?topic=5322045.msg56508992#msg56508992

Don't believe this cow cabinet that is ruling India today! RBI is the strongest stakeholder here and they are supremely against bitcoin or any other cryptocurrency. In a recent interview, the RBI governor said,


Ref: https://bfsi.economictimes.indiatimes.com/news/fintech/privately-issued-digital-currency-is-a-no-no-rbi-governor/72384582

Only a miracle would change that stance!

^^^ I am not expecting a drastic change in the government stance. However, the fact that they were forced to reconsider their decision shows the power of cryptocurrency users in India. Ever since the proposed ban was announced almost three months back, the Bitcoin community has been working hard in social media and other platforms to campaign against the move. Most of us wrote letters and emails to the parliamentarians representing us. Now the regime knows that there are millions of people who are dependent on cryptocurrency in India and if they impose a blanket ban then they will get the befitting reply during the elections. And it helped that the state elections are scheduled for next month.

Let's see what will happen.

India has several times banning and unbanning Bitcoin, so I wouldn't surprised with any news with India regulation about Bitcoin.

That's why P2P is always the option for those country that has restricted/illegal for trading or using Bitcoin. AFAIK Indian bank also freezing bank accounts if they detect something suspicious activity with your funds, you won't get caught if you using P2P as long as you not transfer/receive huge amount money in a single time.

Government and banks aren't Bitcoin friendly, so you need to prepare this if your country has some sign or history of banning Bitcoin.

India is one of the strongest crypto communities worldwide, and it’s not a good thing to completely ban them or treating it as criminal offense for just owning some Bitcoin and other cryptocurrencies. It’s a good thing that instead of banning, they are just going to regulate it. I just hope this would be finalized and push for crypto regulation rather than completely banning it for the Indian citizens. A change of heart is indeed possible!

The government seems to be confused about how to deal with cryptocurrency. Some of the bureaucrats such as Subhash Chandra Garg not only want to ban Bitcoin, but also want to make the possession of cryptocurrency a punishable offense. On the other hand, there is another section, which is of the opinion that clamping down on new innovations will actually drag the Indian economy backwards. And the two camps are very vocal with their demands. As of now, the government doesn't know which position they should implement.

I'm not too sure about this. They could, in theory, find the bank those P2P platforms use to transfer money, or just scroll around the platform and find Indian users who offer a deal and make a fake deal to get their bank details, who knows.

Just be careful and push for acceptance instead, so users can trade freely. Honestly, India has a love-hate relationship with Bitcoin since I first entered the crypto world.

I hope that bitcoin can be well received by the Indian government without any restrictions and bans. We all know India is one of the most populous countries in the world. With a population of that size it will make the bitcoin community even bigger. Hopefully the discussions and negotiations of related parties can bring fresh air for bitcoin in India.

Their love for technology is also great because we are always seeing them at least being competitive in terms of their Information Technology Industry and they have this certain knacks of being fixated on development in every possible opportunity. The Indian Government regulating Bitcoin is a big news because it means that they allotted the time to actually research about it and took the time to create a way for their communities to properly use it. I also hope that other countries would do this and see the advantages of what Cryptocurrencies can bring.

In theory it is possible. Officials can pose as traders and make accounts with various P2P platforms, and then try to do a few deals with established traders. But the question is whether the tax authorities will take this much effort, to nab people who transact $1,000 or $2,000 worth of coins at a time. Another question is whether they have enough resources to do this. But always be careful. P2P is not 100% safe, as long as you are using your real bank account or residence address. If the trader is caught, then the authorities can extract the details of everyone whom he had traded with.

in the end, politicians may play an important role in the direction that bitcoin should take in india, but the problem is that politicians in india do not seem to me to be advocates of bitcoin or cryptocurrencies in general and the RBI is more inclined to create their own currency digital and at the same time create all kinds of barriers so that cryptocurrencies are not used in india.

the party of the current government has control over a lot, they are simply focused on creating their own digital currency because they think that bitcoin Is something from abroad soon hurts their sovereignty... that thinking is the kind of thinking of African leaders when they want to pretend to be very patriotic

As regulating may come as a challenging task for the government, it's still better than being banned in totality. I think there is still no reason to deny it anymore, knowing that it's one thing that would change the financial game worldwide. I know it has made many people wealthy just by HODLing, and it's never too late for others as well. I hope that their consensus would be positive.

The good news is that the cryptocurrency community in India now has hope of using both bitcoin and altcoin cryptocurrencies. I would rather the Government of India regulate it than to ban it completely. They can still make rules about prohibiting the use of bitcoin as a legal mean of payment, but they must consider bitcoin and other crypto asset to be traded on exchange that are already licensed there, and they can regulate it like the Indonesian government does. Enacting taxes, KYC and other are good steps to prevent abuse.

India is an information technology powerhouse and has a wealth of human resources.  They have powerful crypto projects and are invested by organizations around the world.  Consideration of the use of cryptocurrencies will also facilitate the thriving of cryptocurrencies and blockchain in this country.  That I think is good and they can take advantage of regulations to get more crypto tax.

On the other hand Blockchain, Bitcoin and crypto are difficult to control so there is only a way to accept and put them in regulation.

No. India is not an IT powerhouse. US and UK can be regarded as IT powerhouses. India is well known for call centre and BPO/KPO companies, but if you talk about innovation and modern technology, then they are far behind. The problem is that the best talent India had migrated to countries such as US and UK during the 1990s, 2000s and even in the 2010s. The Indian government treat IT employees without any respect and try to squeeze out as much as they can in the form of taxes without providing anything in return. So it was only natural for the best among them, to migrate to the Western nations. Those who remain in India doesn't have the quality and they are contented with BPO/KPO jobs, toiling 60-70 hours per week.

India has always been fighting a losing battle. You can't just ban things and take people's freedom. There are consequences for the government's actions. Many people believe the government always wins, while I do agree generally this is true... There are open shut cases that just cannot be proven without the government breaking its own laws which it wouldn't do so blatantly. (When they do break laws it is not the "government" perse but rather certain members within the government. Bad apples can make the whole batch look bad as they say.

This movement is just due to the possible backlash they will definitely get if they pass something as Nazi/communist/propaganda as being arrested for a truly nonviolent and harmless "crime". Just because the government doesn't like something doesn't mean they can simply make it a law and make it illegal, there are procedures for these things and they take due time. They do not happen over a few weeks. Not even a few months but usually years. laws take forever to be rewritten or clean slated entirely.

Institutions in India need to come up with a solution to regulate cryptocurrencies. There are a lot of comments at the moment, according to which the government will do what billionaire Rakesh Dunjunwala recommends. And after that it will announce the introduction of its own official digital currency.

According to the investor, the regulators have to keep the cryptocurrencies "far away".
He believes that the regulators in his country need to take measures in this area, which includes the purchase and sale of digital currencies. The investor, known as the Indian Warren Buffett, said that would never buy Bitcoin.

Cryptocurrency is a relatively new phenomenon, and many of the ministers within the Indian government doesn't have enough knowledge on the issue. So went by the recommendations of bureaucrats such as Subhash Chandra Garg, who wanted to make ownership of Bitcoin a criminal offense, which could result in imprisonment of up to 10 years in jail. However, lately the ministers seems to have realized that they can't go by the bureaucrat recommendation alone, as it would cause great harm for everyone.

I reckon the only reason why the Indian government has changed from a full ban to regulation is because a ban is very difficult to enforce. They would only make criminals of their citizens.

I was hoping for a full ban so that it would be made an example of what a government should not do on behalf of saving themselves from the cryptospace hehehe. The full ban would have made cryptocoins closer to what they should be.

I know that same with other countries, India will adopt crypto in a positive way. Considering a huge population and economy without cryptocurrency will make them missed what crypto can offer to the economy. Tax is always there and people will also benefit the crypto related opportunities offered nowadays. Regulation of local exchanges is good as long as things are fair with it's users.

Some positive news surely will encourage the Indian crypto community. Earlier I was only hearing and reading a lot of negative information from the media. Since this information comes directly from the government minister, it shows they are serious about it.

I was confused. They have abundant and good human resources. Maybe they are slowly changing their policy to catch up with the world as they loosen crypto regulation.
Cryptocurrency is really becoming a big industry because of its applicability in all areas. I have faith that they will promote Blockchain and cryptocurrency to thrive in this country.

Regulations don't necessarily mean that it's a good thing. When the market remains unregulated, it's probably as free as it will ever get. Nobody is prosecuted, there are no taxes or limitations. When regulations are reasonable, however, it might be worth it because by making Bitcoin fully legal, they're allowing serious businesses to operate comfortably in the area. But when the regulations are tough, I think it's worse than when there are no regulations at all. I don't know which legal force the negative statement on cryptos by the Central Bank of India has, but the intentions to regulate the market by the Minister of Finance sounded unclear (not necessarily as positive regulations).

India is a country where porn, gambling, weed.etc are banned. That says a lot about their progressiveness. Having a population of 1.4 billion (growing at a rate of 2%) is useless, if the government doesn't know how to make use of their skills. They need to understand that this decade belongs to cryptocurrency and blockchain. They are doing the same mistake that they did earlier, by discouraging innovation with their outdated legislations. Perhaps the government is afraid that if they legalize cryptocurrency, then they may lose their control over the general population.

By its definition and certain ascertained features, I thought Bitcoin was a decentralized and uncontrolled cryptocurrency.
How is the term regulate unrelated to the Bitcoin features? How would this regulation be carried out in India? I'm keen!

LOL.. I am from India and we are also confused about this. Two months ago, a bill was listed in the parliament website and according to that bill all the cryptocurrencies except those issued by the central bank will be illegal in India. However, cryptocurrency users have been waging a huge campaign using social media ever since, and now the government seems to have softened their stance. But still there is no confirmation from their side, only some vague statements on this topic.

One thing that the Indian government needs to pay attention to is that with the entry of bitcoin, they will feel economic growth in a better direction. However, we all know, India has always had a point of view that is quite unique from other countries. Although this news has not fully reached the public, I hope India's solution will soon pave the way for bitcoiners there.

I hope that Indian Monetary authorities will consider its decision because India is one of the world's largest cryptocurrency users and it is very unfair for the Indian crypto users to deprive them of trading and using cryptocurrencies, I'm very thankful that my government's monetary authorities are not backward thinking people and has a friendlier approach toward cryptocurrency use in my country. 

I have heard that Indian currency regulators are activating liquidity for bitcoin and crypto holders, and it takes 2-3 months for their people to leave the blockchain world.  It was nice to know that they adjusted and changed that view in a more positive and friendly way.  I remember, India was one of the two countries that caused the great crisis between bitcoin and crypto lovers in early 2018. Their horizons opened the door to discover bitcoin.  That means a lot to us.  Hopefully more countries will change their views and accept bitcoin.

There is no way India could prevent it's people from using Bitcoin.  The only way they could do that is to shut down the internet in their country and that isn't going to happen.

From an Indian perspective, I would say that India needs Bitcoin, more than the other way around. If you take the cryptocurrency capitalization of $1.725 billion, only around 2% to 5% is being held by the Indian users ($35 billion to $85 billion). So it may sound that the Indian users are insignificant. But in terms of numbers, there are more than 10 million cryptocurrency users in India, and most of them are in their 20s and 30s. Many of the younger Indians view cryptocurrency as a powerful tool, which can get them out of poverty.

So bitcoin was unregulated in your country before? Are you sure? I mean how did you guys manage to go unregulated for almost a decade? So it was rumor all along that they are about to ban crypto currencies. Any particular reason why they think your government is going to ban crypto currencies?
Anyway, it would be better to regulate it rather than imposing a full ban. At least people will be able to trade and use it as a regular currency. Banning it completely is going to be such a stupid idea and would be really unexpected from a country that considers itself very "progressive".

I don't think India is planning to accept Bitcoin and all other cryptocurrencies. Rather, they plan to create their own cryptocurrency which will be regulated and managed by their central bank.