India and Bitcoins

[Tigorss]

Fears that a new underground currency could replace the black money hole and further undermine the economic legitimacy of the state have long been circulated by the Reserve Bank of India, and earlier this month Indian banks began to freeze the accounts of those using bitcoin exchanges across the country.

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[Virtual miner]

Correctly said! It is not a legal tender in India means you can not use bitcoin to pay for services and goods you purchase from an Indian citizen. But they haven't ban it either because they simply don't have the infrastructure to do so. Even if Indian government bans bitcoin, people will still use it but the ultimate looser will be the government because they will loose out on tax part.

On the other hand, if the government legalize it, it will have to be considered as a legal tender which may bring significant outrage from the banks who are supporting the development of India through funding.

So the government has taken a midway. They have kept the window open for the willing taxpayers. This way they will not loose a significant amount on taxes as well as pacify the banks. But that's a temporary arrangement. The government is still waiting for the final report and recommendations from the committee they have formed to decide the impact of Cryptocurrency on India's economy.

Exactly, this midway path chosen by the Indian Government is just a temporary decision. While the final decision is yet awaited. That's for sure the government of India won't ever want to lose on the extra income in the form of taxes, so banning it totally would not be smart move, of course. Accepting the bitcoin as a medium of exchange in the country would be a big step and since India is yet not a developed county and it is a developing country, I don't think such a big decision would be taken in great haste!!

[RamBahadur.Gurung]

So Indian government is not confident about the Bitcoin, i heard that they are collecting taxes on Bitcoin trading. How can they collects the taxes without legalising it, bitcoin is not legal tender but we will collect taxes on it those who trades.

This is the irony of being a Bitcoin user in India. Bitcoin is not de jure illegal in India, but the government is harassing anyone whom they suspect of using Bitcoin. And at the same time, they want the users to pay income tax if they are profiting out of the Bitcoin trade.

[Greenkarki]

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?

We have news that the RBI authority has planned to launch its own crypto currency called Lakshmi. The talk is in progress. Another business personality has said that they have formed a team with his son's responsibility and discussing to launch their own coin called jiocoin. So India is almost started welcoming crypto into its country.  Hope in an year,  there will be coins from Indian side.

[maria0202]

in india bitcoin is still not legal.

[Thanasis]

So Indian government is not confident about the Bitcoin, i heard that they are collecting taxes on Bitcoin trading. How can they collects the taxes without legalising it, bitcoin is not legal tender but we will collect taxes on it those who trades.

This is the irony of being a Bitcoin user in India. Bitcoin is not de jure illegal in India, but the government is harassing anyone whom they suspect of using Bitcoin. And at the same time, they want the users to pay income tax if they are profiting out of the Bitcoin trade.

India is not collecting any specific taxes for the crypto currency earnings they are just collecting the income taxes from their earnings irrespective of where it comes from,so your statement is wrong that India is harassing the crypto currency users.But now India is in the legalizing process by adding their identity to the local exchanges but still there is no taxes implemented yet.

[DeadCoin]

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?

Yes. Bitcoin is yet to be announced as legal currency in India. Reserve bank of India has said that its working on to create its own crypto currency called Lakshmi. An another business man has formed a team to under his son's responsiblitly to work on launching a new crypto currency called Jiocoin. Such moves indicate that Indian government is going to welcome crypto currencies.

[Ovidijus01]

Andhra Pradesh has become the first state in India to pilot blockchain technology in two departments and plans to deploy it across the administration, said Chief Minister N. Chandrababu Naidu on 9 October. Addressing Blockchain Business Conference here, he said the state had also created the largest repository of used cases for global start-ups to test their solutions.

Naidu said since the state was leading in e-governance, it was using blockchain technology to address cyber security issues.

The state launched pilot projects for land records and transport. State Information Technology Minister Nara Lokesh said the technology was required to prevent tampering of land records, which had already been digitised and placed online. Similarly, the technology is used in Transport Department to streamline titles of the vehicles.
Stating that Andhra accounts for 60 percent of Aadhaar-based transactions and extensively uses technology for delivery of services, Lokesh said the state required blockchain to protect the IT assets.

[Slipknot79]

The Narendra Modi government and India’s central bank have made it amply clear they aren’t comfortable with virtual currencies. The recent spike in bitcoin’s value, which attracted hordes of investors, has only made the government more vociferous in its criticism.

However, these announcements don’t make these virtual currencies, or trading in them, against the law.

So, their status is in a curious limbo—they’re neither legal nor illegal in India.

I hope that this helps you in some way.

[labhsikh123]

Yes, it is right that bitcoin is not appreciable in India now a days. It is not legal to purchase goods via bitcoins. But , it is considerable in the future by the Government to develop the country.

[Eleven86]

In India bitcoin is neither legal nor banned. But people in India use bitcoin. Bitcoin is not allowed to use for payment instead of local fiat. That is we cannot buy things using bitcoin. Indian government is in neutral in cryptocurrency.  But they keep an eye about the transaction through bitcoin. But in future surely it will be announced as legal. If it is announced as legal Indian government has tremendous growth in economically. And the Indian government is also on the way to create own cryptocurrency called Lakshmi. The process is undergoing if it comes we don't know about bitcoin status in India.

[KrishaBitcoin]

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?

This means that Bitcoin is not declare legal but not ban in India. So therefore you should not wasting time and make this opportunity to earn more Bitcoin without tax as sooner or later Bitcoin might declare legal because the governments is now considering the regulation of this investments in which soon every Bitcoin you will earn will be subject for taxation as per regulation policy.

[SIHIN]

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?

This means that Bitcoin is not declare legal but not ban in India. So therefore you should not wasting time and make this opportunity to earn more Bitcoin without tax as sooner or later Bitcoin might declare legal because the governments is now considering the regulation of this investments in which soon every Bitcoin you will earn will be subject for taxation as per regulation policy.

Yes true I agree with the lack of clarity government this be a good opportunity to purchase BTC more and can be earned to miss more. when later after the government to give your tax will be thinking of buying BTC.

[Kemarit]

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?

This means that Bitcoin is not declare legal but not ban in India. So therefore you should not wasting time and make this opportunity to earn more Bitcoin without tax as sooner or later Bitcoin might declare legal because the governments is now considering the regulation of this investments in which soon every Bitcoin you will earn will be subject for taxation as per regulation policy.

Well there was a case pending in the Supreme Court to challenge RBI circular. So yes India is still in the middle and we only wish that it will not be ban but just regulate it just like other countries. Again, India is a good market so government clamping on crypto will be a big setback to the ecosystem in short term. Plus the Supreme court's decision is good indication that somewhat the Government is very fair but I'm sure the case will be drag for many years. So let's hope for a fair trial so that everyone in India can transact with their banks again using crypto.

[DeadCoin]

In india still bitcoin should be considered as legal. People in india use bitcoin to solve their basic needs. In india it would give job for many people. But the RBI just announced that stop the account of the people who made transactions using bitcoin. But people in india use trading to trade bitcoin buy and sell. Now there is no tax for buying bitcoin use this chance to buy more bitcoin. Otherwise if government announces tax we cannot able to buy at that time.

[Hannahanto]

In india bitcoin is to be considered as legal. There is no offcial announcements about bitcoin banning. People using bitcoins in india as their main income. India also ready to launch its own new coin. Government has analyze about this cryptocurrency. If it is launched in india automatically bitcoin is legal in india also. Lets wait for the changes to come. Using bitcoin we can earn more profit.

[jrrsparkles]

Yes, it is right that bitcoin is not appreciable in India now a days. It is not legal to purchase goods via bitcoins. But , it is considerable in the future by the Government to develop the country.

You can buy anything in India with bitcoin but governments doesn't accept crypto currencies for any kind of payment yet but in future they may reconsider their status about it.Many of the politicians from India are uneducated that is why they calling bitcoin as ponzi scheme,first of all they need to have some experts to create the positive and negativities for their government if they allow bitcoin then only they can decide whatever is good for their country.

[Bharat24]

Currently in India it is not a legal tenders means you can not use Bitcoin to pay for services goods you purchase from an indian citizen but they have not ban it because presently. They don't have infrastructure to do so.

[Aleh777]

In india bitcoin is not legal but at the same time it is not banned. RBI of indian government just asked the banks to stop the accounts of the person who made transaction for bitcoin.  But we cannot use bitcoin for any purchase in india. Indian government will have an idea to create own coin so they didnt banned the bitcoin. People are using bitcoin as their investment. So make this chance to invest in bitcoin and gain more income.
 

[yesyes18]

Well, Indians have suffered some bad news recently. The Supreme Court has refused to grant them their plea on the ban of exchange between fiat and crypto. That's very bad to hear in this times but anyways we hope a redemption comes soon.