Are Bitcoin and trading crypto-currencies legal in India? The government has not found a definitive answer, but multiple contradictory statements over the years. When it comes to the regulation of Bitcoin and other cryptocurrencies in India, there are three most relevant authorities from where the word may come from: the government of India, the Supreme Court or the Reserve Bank of India (RBI). Let's analyze, what were their views up to here, and the direction in which we are heading.

Reserve Bank of India

The Reserve Bank of India has so far delivered two announcements regarding the legal status of Bitcoin. The first, published on December 24, 2013, warned people of the financial, operational, legal, customer protection and security risks to which they were exposed.

On February 1, 2017, the Reserve Bank reiterated its position, stating that it has not granted any license / authorization to any entity / company to operate such systems or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc. dealing with virtual currencies will do so at his own risk.

On Sept. 13, 2017, Sudarshan Sen, executive director of RBI, speaking at an official event stated:

"At this point, we have a group of people who are looking at fiat cryptocurrencies, something that is an alternative to the Indian rupee, so to speak. "

However, he added:

"With regard to non-fiat cryptocurrency, I think we are not comfortable … cryptocurrencies non-fiat like Bitcoins, for example "

On December 6, 2017, RBI reiterated its warning for the third time.

Indian Government and Supreme Court

After a long gray period, in June 2017, it was reported that the government. India plans to regulate Bitcoin and grant it legal status after a government. appointed committee gave him a positive nod. However, this never materialized.

An interdisciplinary panel formed in April 2017 by India's Finance Minister, Arun Jaitley, had recommended in his report presented on August 2, 2017, to ban all cryptocurrencies.

In November 2017, the Supreme Court ordered the government to respond to a Supreme Court motion to regulate the flow of Bitcoin and ensure that this virtual currency is made accountable to the Ministry finances.

weeks after this judgment, on November 30, 2017, India's Minister of Finance, Arun Jaitley, speaking at an event reiterated RBI's position:

"… Regarding the position of the Indian government, we have given no legitimacy to cryptocurrency Yes, we have received the report, and it is in progress

Blockchain-Not Bitcoin

Some of the largest Indian banks, including ICICI, SBI, and Kotak Mahindra, were using Blockchain technology. The executive director of RBI had hinted that RBI was looking to create its own cryptocurrency like the central banks of England or China. Shortly after that, the news broke that the government. from India intends to introduce its own crypto-currency named 'Lakshmi & # 39; (from the name of the Hindu goddess of wealth).

Currently Bitcoin is facing multiple challenges to existing laws in India, mainly the 1934 RBI Act, the 1999 FEMA Exchange Act, and the Money Laundering Prevention Act. (PMLA) 2002. Any legalization of Bitcoin or introduction of a new cryptocurrency, even if RBI controlled, will require a modification in the RBI Act of 1934 and FEMA At least

The Government has adopted a policy We are waiting for cryptocurrencies, but this will prove disastrous since, as we speak, more and more users are marketing cryptocurrencies. India. According to Blockchain.com President Nicolas Cary, over 2,500 Indian users sell cryptocurrencies every day.

The overall legal development regarding Bitcoin and other crypto-currencies in India, however, is taking a noticeable direction: Bitcoin gap and adopting the technology behind it.