Bitcoin Legal Status in India Explained!

[ahmad21]

So there are a lot of people spreading word about how Arun Jaitley our very own finance minister today said in budget that Bitcoin will not be allowed to be a legal tender. Moreover govt. will try to curb use of bitcoin for illegitimate activities as well as shift it out the system.

Question : Is it banned?
Answer: No, It is still not banned. Banning meanings complete restriction on holding, trading, transferring bitcoins. Anyone found doing this will be penalized. There is still no such penalty so no its not yet banned in India.

Question: If its not banned then why not legal tender?
Answer: Bitcoin doesn't really needs a legal tender. The legal tender will be of no use to bitcoin. Moreover it will bring some inflow of money laundering using which the whole money will flow outside the fiat system making it difficult to control economy.

Question: What in future?
Answer: If they have said that such activities will be tried to curb then its obvious India might bring in some laws which will limit or even may shut usage of bitcoin in future. Remember there is nothing as such now.

Question: What should we do?
Answer: You can have two approaches. If you are ready to take a bit of risk but to enjoy using bitcoin hold it and wait for any further announcements. or have a pessimist approach and withdraw your money altogether and live a happy and peaceful life.

I hope I have contributed a bit in removing the FUD.

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[1NV3ST0NM3]

Pretty well said I think it really ends the FUD quite a bit. People are way too worried regarding the implications of the what Arun Jaitley said today but there is nothing to worry in it. He has just repeated what he said earlier once there is absolutely nothing new to the words. Moreover he will obviously not give any comment until the committee assigned to draft report on bitcoin submits its findings and decisions.

[mrcash02]

So for now you are safe to keep using Bitcoins, but you don't know for how long and what will happen in the future regard Crypto-Currencies...

The way you talk (still not banned, not yet banned...) isn't very optimistic. The government clearly isn't at Crypto-Currency's favour, they just don't know exactly yet what to do (total ban, heavy regulations, heavy regulations in parcery with other countries...), and that is what gives you time to keep using it normally. Many other countries are in similar situations, now it will depend how far the population is able to go to not accept a decision that will be harmful to Crypto-Currency.

[Quidat]

~snip~

Finally, someone speaks out and clarify regarding on this matter. This is actually a FUD which do really make some effects into the market and i agree on the points above that bitcoin doesnt really need a legal tender.
If they do have the plan on making a law then its understandable it would really still be the same on going such way on prohibiting it.

[chiggz]

Arun Jaitley our very own finance minister today said in budget that Bitcoin will not be allowed to be a legal tender.

The guy who told cash crunch would be over within 5 days of demonetization. I wouldn't trust him a bit.

Many shops where I live use eclairs as legal tender for small change

I hope I have contributed a bit in removing the FUD.

You have. But the FUD will be going on until the government sets clear rules for the exchanges to work on. Recently Banks have started to part ways with many Crypto exchanges making it harder for people to withdraw the money. Its clear RBI won't ever allow decentralized currency in any form. They are not clearing their stand whether trading in bitcoin is legal or illegal. Wish something like South Korea would have happened in India.

[ahmad21]

Arun Jaitley our very own finance minister today said in budget that Bitcoin will not be allowed to be a legal tender.

The guy who told cash crunch would be over within 5 days of demonetization. I wouldn't trust him a bit.

Many shops where I live use eclairs as legal tender for small change

Haha Eclairs and all other types of candies have already been given a legal tender I think. People are reluctant here to accept Rs.10 coins but eclairs generally face no such issue.

I hope I have contributed a bit in removing the FUD.

You have. But the FUD will be going on until the government sets clear rules for the exchanges to work on. Recently Banks have started to part ways with many Crypto exchanges making it harder for people to withdraw the money. Its clear RBI won't ever allow decentralized currency in any form. They are not clearing their stand whether trading in bitcoin is legal or illegal. Wish something like South Korea would have happened in India.

Moreover I think its a bit difficult to imagine something what happened in Korea will happen in India unless Ministers themselves are a bit willing to keep their black money in blockchain. Because even with demonetization the government tried to curb the money laundering in cash I don't think will allow such things in India because whatever you might say anonymous trading cannot be completed curtailed until you illegalize the whole cryptocurrency out of the system which no doubt in itself is equally difficult.

[dogandogru]

Arun Jaitley our very own finance minister today said in budget that Bitcoin will not be allowed to be a legal tender.

The guy who told cash crunch would be over within 5 days of demonetization. I wouldn't trust him a bit.

Many shops where I live use eclairs as legal tender for small change

I hope I have contributed a bit in removing the FUD.

You have. But the FUD will be going on until the government sets clear rules for the exchanges to work on. Recently Banks have started to part ways with many Crypto exchanges making it harder for people to withdraw the money. Its clear RBI won't ever allow decentralized currency in any form. They are not clearing their stand whether trading in bitcoin is legal or illegal. Wish something like South Korea would have happened in India.

Hahaha...Eclairs...Good one.
Most of the Indian investors doesn't know much about bitcoin and just buying it coz it's in trend. They have no intentions to use it as a currency, they just want to double their investment and Exit from the market. This FUD created in INDIA has kicked all such weak hands from crypto market and I think Bitcoin will come back with double force now.

[vit05]

  India's approach is somewhat different from what has happened in other countries. They did not come knocking down doors and banning exchanges, or accusing of crimes. It seems that the government is still trying to understand what Bitcoin is. I think it will take a long time for a definitive definition. But total prohibition is practically discarded today.