In India, Bitcoin is not a legal tender. But it is not explicitly termed as illegal. What is the reason for such a stand by Government? what are its implications?
It's like with many other countries. Bitcoin is a novelty and there are no laws regarding it. It's not illegal and it's not officially legal because nobody has bothered to make it legal or illegal yet. In some European countries it was made officially legal while some are regarding it as a harmless internet project that is not important enough for them to start the process of legislation, at least for now. It's all fine. If something isn't illegal it's legal. If there's no law saying you can't fly a drone in the city, it means that you can as long as you don't damage property or annoy people. It's the same with crypto.
the legality of bitcoin in India is starting to improve and the Indian government is trying to regulate it by presenting taxes, bitcoin investors will now need to pay taxes on their income. Nonetheless, significant ambiguity still exists regarding the taxable nature of cryptocurrency, because of its unique ability to resemble security and currency.
