{"id":35954,"date":"2018-11-01T12:39:13","date_gmt":"2018-11-01T07:09:13","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35954"},"modified":"2018-11-01T12:39:13","modified_gmt":"2018-11-01T07:09:13","slug":"bitcoins-must-be-regulated","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/bitcoins-must-be-regulated\/","title":{"rendered":"\u2018Bitcoins must be regulated\u2019:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/bitcoins-must-be-regulated\/article19367517.ece\"><span style=\"font-weight: 400;\">\u2018Bitcoins must be regulated\u2019<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>The digital currency can be a boon for the country.<\/b><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoins can provide a superior route to encourage digital transactions, a report by PHD Chamber of Commerce and Industry said, adding it is essential to expand the regulatory framework for bitcoins to reinforce safety and security aspects.<\/span> <b>Introduction:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Bitcoins can be a boon for the large population of the country which is still unbanked; it can provide them a superior and simple peer-to-peer digital currency trading platform through desktops and mobile devices,\u201d the report, titled Industry Perspective on Bitcoins, said.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It highlighted the importance of a regulatory framework and awareness programmes about benefits and dangers of bitcoins.<\/span><\/li>\n<\/ul>\n<p><b>What is cryptocurrency?<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Bitcoins is one of the kinds of Cryptocurrency recently in news.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Crypto currency, which planned to be brought under a regulatory regime, is a digital currency.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It allows transacting parties to remain anonymous while confirming that the transaction is valid one.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It is not owned or controlled by any institution including both government institutions and private institutions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Multiple numbers of such currencies used globally such as <\/span><b><i>Bitcoin,<\/i><\/b><span style=\"font-weight: 400;\"> Ethereum, and Ripple.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Crypto-currency can also be used for a lot of legal activities depending on which retailers accept such currency.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The market cap for all crypto-currencies has crossed $100 billion, with most of the increase coming in the past few months.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">On April 1, the total market cap was over $ 25 billion, representing a 300% rise in just 60 days.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Crypto-currency can also be used for a lot of legal activities depending of which retailers accept such currency.<\/span><\/li>\n<\/ul>\n<p><b>Crypto-currencies globally:<\/b> <span style=\"font-weight: 400;\">A look at how crypto-currencies such as Bitcoin are regulated globally shown as below:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">In Australia, capital gain is applied while GST is not applicable.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In United States: In New York, capital gain is applied but sales tax is not applicable.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Japan is exempt from consumption tax but subject to capital gain tax.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Britain is exempt from VAT but capital gains tax is applied.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In China, taxation is not applied.<\/span><\/li>\n<\/ul>\n<p><b>Whether cryptocurrencies should be ban or not?<\/b> <b>Advantages of such currencies:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">It will encourage the development of a supervision ecosystem.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Promote a formal tax base.<\/span><\/li>\n<\/ul>\n<p><b>Disadvantages of such currencies:<\/b> <span style=\"font-weight: 400;\">Payments by such currencies are on a peer-to- peer basis and there is no established framework for recourse to customer problems, disputes, etc.<\/span> <b>What is Bitcoin?<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Bitcoin is a digital currency created in 2009 that uses decentralised technology for secure payments and storing money that doesn&#8217;t require banks or people&#8217;s names. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Santoshi Nakamoto, a secretive internet user, invented bitcoin in 2008 before it went online in 2009.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Till December 2016, there were around 16m bitcoins in circulation. In March 2017, the value of a Bitcoin stood at $1,268 for the first time.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Bitcoins were recently in news when the two global cyber ransomware attacks \u2013WannaCry and Petya were took place. Attackers sought about $300 in bitcoin as ransom.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">One bitcoin today is worth as much as 60 grams of gold.<\/span><\/li>\n<\/ul>\n<p><b>Uses of Bitcoins:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Bitcoin is used for multiple purposes including funding companies, investing cash and transferring money without fees.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It is commonly associated with criminal activity such as drug dealing, cybercrime and money laundering, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">In 2015, RBI published a financial stability report on disruptions in financial technology. In the report, it highlighted the importance of \u2018private blockchains\u2019 which have the potential to transform how bank back-end operations functions, as well increasing the payments.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The digital currency can be used to move money inexpensively across borders within a matter of minutes without even having a bank account.<\/span><\/li>\n<\/ul>\n<p><b>India\u2019s take on bitcoin:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The recent demonetization of Rs 500 and Rs 1000 notes by the government in order to curb black money in the country also pushed people to go digital transactions and use online wallets instead of cash.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">After demonetization, India saw a rise in bitcoin demand.<\/span><\/li>\n<\/ul>\n<p><b>Are Bitcoin legal in India?<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Even as countries like Japan and Russia move to legalise the use of Bitcoins, India, despite being at the cusp of a digital revolution is yet to officially recognise the cryptocurrency.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Reserve Bank of India, had earlier cautioned users, holders, and traders of virtual currencies including Bitcoins.<\/span><\/li>\n<\/ul>\n<p><b>What will be implications if Bitcoins are legalised in India?<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Bitcoins would fall under the purview of RBI\u2019s 1934 Act.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Bitcoin investors would be taxed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">RBI would issue guidelines regarding investment and purchase of Bitcoins.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If any foreign payment is made through Bitcoins, it would fall under the purview of FEMA Act.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Returns from investment in Bitcoins would be taxed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The new regime may possibly bring trading under the domain of the stock market regulator, Securities and Exchange Board of India (SEBI).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The idea is to treat such currency in a similar manner like gold sold digitally.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It can be treated on registered exchanges in a bid to \u201cpromote\u201d a formal tax base.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It will keep an eye on their use for illegal activities such as money laundering, terror funding, and drug trafficking.<\/span><\/li>\n<\/ul>\n<p><b>Conclusion: <\/b> <span style=\"font-weight: 400;\">Bitcoins have potential to fight counterfeiting in developing countries like India, but not if transaction fees are higher than the living wages. So there is need to transfer money quickly from one address to another with bare minimum fees.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Bitcoins must be regulated\u2019:\u00a0 The digital currency can be a boon for the country. Context: Bitcoins can provide a superior route to encourage digital transactions, a report by PHD Chamber of Commerce and Industry said, adding it is essential to expand the regulatory framework for bitcoins to reinforce safety and security aspects. Introduction: Bitcoins can&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/bitcoins-must-be-regulated\/\">Continue reading <span class=\"screen-reader-text\">\u2018Bitcoins must be regulated\u2019:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35954","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704831194},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35954"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35954\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}