[2017-10-02] Bitcoin ‘Will Not Become Legal’ In India Without ‘Monitoring,’ Says

[gokayc]

Bitcoin “will not become legal” in India unless a suitable organization “monitors” it, a high-profile economist has forecast.

Speaking to local news outlet Economic Times, SP Sharma chief economist at the PHD Chamber of Commerce and Industry in Delhi, said that Bitcoin’s gray area status in the eyes of regulators was unlikely to change without a shift in practices.

“It’s fair to say that currently, the cryptocurrency is neither illegal nor legal in India,” he told the publication.

    “Unless the cryptocurrency is properly and comprehensively regulated and monitored by a robust institution, I don’t see Bitcoin becoming a legal currency in India.”

The comments reiterate what has become business as usual for Bitcoin investors and businesses in India regarding cryptocurrency and the law.

While authorities and the central bank regularly produce warnings about the potential to incur losses, the country’s fledgling crypto economy has maintained no legal issues are preventing its use.

This year, the country’s government has pledged to create a regulatory framework for digital currency, but it remains unclear to what extent consumers will need to abide by identification procedures in order to stay above board.

As with many developing economies, investors in India have caught the ICO bug, with BitIndia’s planned sale for its exchange platform last week receiving support from John McAfee.

Nonetheless, Sharma foresees a pattern of Bitcoin price volatility continuing as a matter of course in future.

“[...] This drastic price rise was followed by severe volatility, which will be major challenge going forward,” he said in reference to Bitcoin’s four-fold increase since the beginning of 2017.

The economist did not elaborate on the “monitoring” measures required to bring about change, nor how such state-sponsored activities would work in practice.


https://cointelegraph.com/news/bitcoin-will-not-become-legal-in-india-without-monitoring-says-chief-economist

[Kprawn]

I am never a advocate for strict regulation, because too complex and strict regulations will stifle innovation, but I can also

understand why governments wants to regulate it. The line between regulation and over regulation is very fine, as we

saw what happened with the BitLicense in NY. { It was used as a tool to slow Bitcoin adoption and also to exclude people who

did not have the money to pay the license fees }  

India, If you reading this, PLEASE learn from their {NY} mistakes and open up Bitcoin use for everyone, even if you have to

regulate it.  

[aso118]

I think he has got his logic mixed up and messed up. If something isn't explicitly declared as illegal, then it is legal.
Since the government has not come out with any pronouncements on Bitcoin yet, it is perfectly legal.

[cr1776]

Governments don’t like their citizens to be free. So they want to control the tools that allow them too. Just like they thought $5-10 equivalents were “large bills” and had to be removed from circulation. Controlling authoritarians have to control.

[jseverson]

I think he has got his logic mixed up and messed up. If something isn't explicitly declared as illegal, then it is legal.
Since the government has not come out with any pronouncements on Bitcoin yet, it is perfectly legal.

I think "legal" in this sense basically means get involved at your own risk. If you are a law abiding citizen operating perfectly within the jurisdictions of the law, then the state can protect you should something happen. Bitcoins not being legal or illegal in this sense implies that the state cannot prosecute you because there are no regulations in place, but it also cannot protect you precisely because there are no regulations in place. We have yet to truly see if regulations are good for the rise of cryptocurrencies, but we'll see soon enough. For now I'm content with the live and let live approach.

[iamTom123]

I am never a advocate for strict regulation, because too complex and strict regulations will stifle innovation, but I can also
understand why governments wants to regulate it. The line between regulation and over regulation is very fine, as we
saw what happened with the BitLicense in NY. { It was used as a tool to slow Bitcoin adoption and also to exclude people who did not have the money to pay the license fees }   India, If you reading this, PLEASE learn from their {NY} mistakes and open up Bitcoin use for everyone, even if you have to regulate it.  

I fully understand where you are coming from and indeed there are times when regulations can paralyzed innovations and this is really true in so many industries much more in this generation which has that affinity to produce more and more laws restricting anything we can think of without consideration if those laws have already become catalysts for killing change which should be avoided in the first place.

As to Bitcoin, while we are welcoming regulations, it should be done with the use of common sense and not based on viewing it as threat and hence the need for control. I know that each country and economic fundamentals are different from each other but I think India can learn a lot of things with how Japan is currently handling Bitcoin to their country's advantage.

[krishnapramod]

Bitcoin in India is currently self-regulated under Digital Assets and Blockchain Foundation India (DABFI). SEBI (Securities and Exchange Board of India) panel is working on legal framework to regulate Bitcoin in India.

If Bitcoin gets legalized in India then it would come under RBI’s 1934 Act, foreign payment in Bitcoins would fall under FEMA Act, returns in Bitcoins would be taxed. Doesn't seem too appealing.

Since 2013, RBI has made a couple of press releases regarding Bitcoin. They aren't against Bitcoin usage, but without proper regulation users would be using Bitcoin at their own risk. Until RBI regulates Bitcoin, it is self-regulated in India.

https://rbi.org.in//Scripts/BS_PressReleaseDisplay.aspx?prid=39435

[Carlton Banks]

I think he has got his logic mixed up and messed up. If something isn't explicitly declared as illegal, then it is legal.
Since the government has not come out with any pronouncements on Bitcoin yet, it is perfectly legal.

Watch out for countries with a Napoleonic legal system.


Originating (and exported) from France, the Napoleonic legal system is highly intolerant/illiberal. In essence, any act or physical object not defined in a legal statute is illegal.

Obviously this is impossible to enforce, but the state government in such countries use this as a legal pretext to use aggressive force under any circumstance they choose to.

Bitcoiners in all such countries should be aware they are walking on very thin ice. Simply take a look at France itself on coinmap.org, it's the dead-zone of Europe when it comes to Bitcoin merchant acceptance.

[Proton2233]

In fact, all countries do not want to accept bitcoin because it is not determined with the methods of its regulation. If these plans are carried out and bitcoin will be controlled by the state the answer to your question why you need such a bitcoin. Better all as there is now. I don't feel discomfort in the fact that bitcoin is now unrecognized.

[Gotottack]

I am never a advocate for strict regulation, because too complex and strict regulations will stifle innovation, but I can also

understand why governments wants to regulate it. The line between regulation and over regulation is very fine, as we

saw what happened with the BitLicense in NY. { It was used as a tool to slow Bitcoin adoption and also to exclude people who

did not have the money to pay the license fees }  

India, If you reading this, PLEASE learn from their {NY} mistakes and open up Bitcoin use for everyone, even if you have to

regulate it.  

Hi! I quite agree with your statement that a too strict regulation can stifle innovation. However, we must also put in mind the interests of the Indian government in every business transaction that comes within the bounds of their jurisdiction since it must also primarily protect and preserve its core for the best interest of its people. So I believe in a good balance in every situation so as to attain individual or personal objectives.   

[squallw]

All governments wants to control your ppl, but they will loose it with bitcoin.