India declines Bitcoin Legalization Again

[DreamStage]

The Reserve Bank of India (RBI) has published its official document on a draft framework for fintech regulatory sandbox entitled “Draft Enabling Framework for Regulatory Sandbox.”
The document explicitly excluded crypto assets like bitcoin, demonstrating a lack of intent to regulate the local crypto market.

“The entities may not be suitable for RS (regulatory sandbox) if the proposed financial service is similar to those that are already being offered in India unless the applicants can show that either a different technology is being gainfully applied or the same technology is being applied in a more efficient and effective manner,”



From: https://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=920#S1

Full News Source: https://www.ccn.com/india-bitcoin-shuns-crypto-from-fintech-sandbox

Do you think Bitcoin being legalized will still happen for Indians?

I'm guessing for that they would have to allow exchangers returning to online business again.

[incomefromcoins]

The Indian government is preparing guidelines with the help of prominent auditing firm in Delhi for suggestions probably by this year end we may get clear cut clarity from the government before that we can't come to conclusions on Indian government regarding legality of cryptocurrency

[dothebeats]

Seems like they really are against cryptocurrencies even after some groups in India have already lobbied for the legalization of the said financial tools/assets. This is the second time the draft and framework was reviewed, and also the second time they have rejected or showed negative signs of accepting the said proposal which sucks since there aren't anything really that could harm India's economy should they accept the legalization of crypto. Perhaps people of India need to show more interest regarding cryptocurrencies before RBI and the government of India see this venture as somewhat gainful for their end after all.

[Harris Stevens]

The Indian government is unable to understand the depth of bitcoin the technology and the government will probably devise a plan to seek a mutual ground with the crypto-exchange firms to regularize it mainly i see that via KYC implementation to ensure no more black-money or money laundering is implemented as they have suffered through that in the past and are trying to avoid the same problem.

[Pab]

From article

Sometimes, no regulation is not bad news. It probably means that the government of India does not see cryptocurrencies as a matter of immediate concern, or something that needs to be regulated right away. This at least means that fears of a ban are not imminent,” Shetty said.

i think like above.In that case and like in many other cases no regulation is not bad news
Better no regulation without ban than regulation what can create problems for users
Tell me in what country we have real crypto currencies regulation
Regulators are trying to avoid regulation
Crypto currencies are to popular to ban them and too much decentralized to fully approve them
However i think that India can follow France and create some space for ICO made in India
There is so many startups there

[talkbitcoin]

so can we expect another huge bitcoin price surge over in India? how much higher is it going to go this time?
i remember last time they started cracking down price was around $2000 in USD markets and about 40% higher over in India markets at a premium price of $2800. if they keep it up again we may see that be repeated and new ATH be reached over in India while the rest of the world watches Indians fill their pockets with bitcoin

[Nolimitz84]

It is difficult to judge the country in which you never lived and the culture and traditions that you do not know.In this country, a very large number of residents and if they are all categorically denied the use of bitcoin it is very sad.Although I have met many startups from India and I think that the published news is only rumors.

[Woodie]

As bad as we want crypto to be legalized everywhere, I think in this case  the government is avoiding underselling itself or drafting crypto regulations which will see them shooting themselves in the foot, maybe they need more time to learn about this financial instrument/ technology.

[okala]

The Indian government have always been against bitcoin and the entire cryptocurrency industry because the can't control it and is running on a decentralized mechanism. I have never expected any approval from Indian because the bank is in control over all the financial transactions that control the economy.

[Nadziratel]

Countries are cautious about this. There is no country that offers serious legal infrastructure yet. But for some reason there is an expectation from India.

[antisocial77]

lets see.in a few years they will decide to make them own coins who agains to crypto now.its just a matter of time.they will do that when they realized they already miss the train.

[erikalui]

Only applications using blockchain technology may or may not be permitted but still has not passed out any law for or against it so no legalization or non-legalization is mentioned.

[kryptqnick]

Not intending to regulate doesn't equal banning. The bank wants to make the most of new technologies while keeping everything under control. Moreover, the bank statement is most likely not legally binding. So it's de facto regulations, not de jure. Furthermore, it might be that the government and the bank disagree on this matter, and the government is still committed to regulating the market. Anyway, I guess we'll have to wait to see the general tendency and the authorities' attitude to Bitcoin.

[Duzter]

Only applications using blockchain technology may or may not be permitted but still has not passed out any law for or against it so no legalization or non-legalization is mentioned.

Yes, until now there isn't anything specific has been revealed officially from the government whether crypto is illegal or legal. India being a big country with the increased population serve as a big market. Making it legal from a democratic country is not that easy and if it's been given legal support, a big impact can be felt on the price of bitcoin as well other digital currencies.

[Haunebu]

I read somewhere recently that the Supreme Court of India have been delaying the crypto case against RBI for months now and no verdict on it has been delivered yet which is why I don't think what op mentioned is completely legit in this case.

As far as I know, Indians are still actively trading crypto through P2P and OTC solutions.

[Beerwizzard]

Bitcoin is NOT illegal in India. Being illegal means that there is some particular sanctions for holding, using and accepting bitcoin. This is when your government provides a policy when you can get in jail (or at least get charged) for being related with BTC. If such things don't happen in your country then Bitcoin is not illegal.
If there is no clear statement about cryptocurrencies in the law it doesn't mean that it is illegal.

[Bitinity]

Do you think Bitcoin being legalized will still happen for Indians?

I'm guessing for that they would have to allow exchangers returning to online business again.

Anything may happens in this technology, those who do not like bitcoin may love bitcoin in the future and vice versa.
In case of government regulation, it may change if there is a chance on the government such as new President and new government staff.

[Ailmand]

It seems that India has no intention to study the real purpose of cryptocurrency. As what is mentioned in the article, it only means that India doesn't see cryptocurrency as a matter of immediate concern. Let's just hope that they will reconsider it somewhere in the future as many countries in Asia started to regulate and adapt cryptocurrency.

[BitcoinExchangeIndia.com]

The ones in touch with Govt. of India or RBI needs to explain the job creation aspect of Bitcoin in India. Otherwise, they give a damn about Bitcoin's benefit in general.

[carlisle1]

I was expecting this from the beginning.so no wonder it happened again as the Indian government has this treatment for cryptocurrency.but in time since theres some issue that Indian government is just waiting for some expert opinion so they can decide the better way and for the whole countries concern