India declines Bitcoin Legalization Again

[libert19]

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.

There are actually many, but also many who are losing the interest since RBI has banned banks from participating with crypto individuals.

Crypto trading was profitable business already as governments were used to get taxes from exchanges, but since the ban they don't get it anymore. Some left and some are using p2p methods.

I still don't understand what was their reason for ban.

[lyks15]

It seems India is not yet ready to adopt bitcoin. If we think acceptance and legalization is not a simple thing to decide. More of netizen of that country will be affected. Especially those are employed there is a big possibilities that they will loss their job because all the transactions will be online. Next is upgrading system. Maybe government and merchants are not yet ready also in upgrading their system to make it possible.

[Sonu_titu]

I cant fully understand why the India government often declines the legalization of btc, i think the govt actually needs a better understanding of blockchain and cryptocurrence and then btc, the positive impact it will have on the teaming India youths who are enthusiast about crypto, the govt just has to realize that crypto is globally now and the need for recognition and legalization is very important, it is inevitable, it could be now or later but it will surely happen.

I completely agree with you. They need to be educated about the technology. Also, it is time that some new generation person take up the debate against the ban.

[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.

There’s still a chance for the legalization of bitcoin in India since there’s no final law about regulating their people from owning bitcoin. Don’t panic yet, they are still studying the potential and benefit of bitcoin to them, they will come up to a great result and Indian people will be more happy to own more bitcoin. Its not easy to accept bitcoin, they need to be fair in all aspects.

Nobody is panicking but instead many are just irritated the way they are handling things. One side they ban banks from accepting bitcoin deposits and the other hand they allow startups to use blockchain technology with certain terms. They aren't committed to whether they should/shouldn't legalize the currency and the Indians who don't know about crypto keep telling that it's illegal.

[robelneo]

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

They are now doing it, because they want a documented and well-studied structure of explanation why they should ban or regulate Cryptocurrency, I doubt if they will totally ban Cryptocurrency, India is one of a technology powerhouse, they will eventually adopt it sooner or later, because Bitcoin and cryptocurrency is a technology that will not just go away.

[omone1]

I think the India government having seen the complexity involve in trying to regulate bitcoin, they choose to look away for now, while watching how other advance countries will handle theirs, they may draw reference from a more advance nation in the future. No government will want to been seeing as guessing working. So there is need for proper understanding on how bitcoin technology work and functions as a currency. This is just my thought and submission.

[GelaiThePom]

I don’t believe that India bans Bitcoin or even illegal to use them. It’s just that they don’t want their people to use it as the primary currency because it could have an issue with their culture and their government. Both coinbase and bittreo are good exchange when you want to start doing crypto in India, or anywhere.

[aws-supply.me]

They will regret this in the future when they're left far behind in the dust by other countries....

[fuathan]

It is bad news for the cryptocurrency market. However, things are heating up slowly and the bull market is started to come back again. Curious about the actions the Indian government take in several months. If the hype comes back, they may take some serious actions against cryptocurrencies.

[Mpamaegbu]

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.

India is in the eye of the crypto community because of its large population just as we have with China. We believe the mass adoption could have a boost if these countries with very large population get crypto friendly. Otherwise I don't think we should even be looking that way. Erratic policies have not helped advance any course, even in business. Let's continue to hope that with time the government of India will do the needful.

[Sithara007]

Being a resident of India, I have to say that this was along the expected lines. The Indian Rupee is not a very strong currency, and it get devalued every year. So there is obviously an incentive for the Indians to use Bitcoins to store their wealth. On top of that, tax evasion is very rampant in India. According to some sources, only around 3% of the population pays income tax. There were reports of BTC being used for tax evasion.

[kotajikikox]

Almost a year discussi g about indian goverment for bitcoin guidelines how it regulate because they scares of crypto high volatility fluctuation. Government of india is interested abouy digital currecy to become legal but the problem is some official investing in bitcoin is look like gambling and gamble is not allowed to the muslim country.

[Digitalbitcoin]

Two things we have to keep in mind 1) Advantages and 2) Disadvantages.

India is a democratic country. So the ruling government must have willing power to accept global economic and technical trend. Most of the time, ruling governments think about disadvantages rather than thinking of advantages.

Main disadvantages are not controlling or monitoring the flow and price of BTC. Another issue is no framework for tax calculation on the usage of Bitcoins. And a very important factor is price fluctuation, which is more than 30% against fiat currency globally.

And some considerable advantages are as transparency in accounting and monitoring, speed and governance. Government must have to focus on the advantages of this revolutionary technology by legalizing for a better upcoming future.

[AltcoinTradingSignal.com]

I want to give a different opinion here. I have a friend in India who thinks that the current Indian government is not open to new technology or the options it is providing. Also, right now, there is election time, and no government is ready to take a chance when it comes to digital/decentralized currency. I hope that the stance changes soon when the elections are completed, and everything settles down. Let's hope for the best! Legalization can open new doors for cryptocurrency and blockchain in general.

[djsugar]

I am glad that they are at least not banning cryptos in their country. I have some Indian friends and they can trade on international exchanges and can buy and sell cryptos through p2p. They don't have any regulations as such at this point. That's enough for an investor, trader or believer. Yes, this hinders the crypto awareness to other masses. The way India is behaving, I hope they don't end up banning it .

[kentrolla]

This is really a bad news for crypto community as one of the most populated country is ignoring crypto to announce it as a legal one, they want to check the mass adoption of crypto across the globe and how user friendly it has been used. The government want to make favour for the public those who are interested to invest at their own risk, rather than declining it.

[Mandoy]

Well I dont agree that the Indian government is really 100% against bitcoin legalization including other cryptocurrency. Though the RBI or the reserved bank of India have made a statement last 2018 to declare all bitcoint related transactions as illegal and advised banks to refrain from transacting digital assets; but the government have a two sides of the coin on this matter. Several meetings were held to discuss the legalization of cryptocurrency.  There are two groups involved those who are with cryptocurrency and those who are against it. As I have heard RBI lost their battle and the crypto groups are now continuing using bitcoin in India.

[dupee419]

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.

I mean I don't want to become too optimistic but I think that more and more countries have made BTC legal and as the years pass by more countries have realized how beneficial BTC would be to their citizens and might as well improve economy though I don't know if India will legalize BTC but with many countries legalizing Bitcoin then I am sure India will decide to make it legal once and for all.

[Ale88]

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

I totally agree with you, they're still trying to understand how to deal with it.

[bitbunnny]

I can't say I'm surprised with such decision of government of India but I'm pretty much convinced this is not peemanent. At the moment they probably don't know how to deal with Bitcoin and other cryptocurrencies but I'm sure they are looking for some kind of solution, maybe from examples from other countries.
Anyway, to my opinion that will not stop Bitcoin users in India and nothing much will change. There is no room for panic.