{"id":82407,"date":"2021-02-13T10:16:28","date_gmt":"2021-02-13T04:46:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=82407"},"modified":"2021-02-15T17:23:48","modified_gmt":"2021-02-15T11:53:48","slug":"crypto-currencies-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/crypto-currencies-in-india\/","title":{"rendered":"Cryptocurrencies in India"},"content":{"rendered":"<p><strong>Source: <\/strong><a href=\"https:\/\/epaper.thehindu.com\/Home\/ShareArticle?OrgId=G6L893HUP.1&amp;imageview=0\">The Hindu<\/a><\/p>\n<p><strong>Syllabus: <\/strong>GS 3. Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment.<\/p>\n<p><strong>Synopsis: <\/strong>The government should ensure a smart regulation of <a href=\"https:\/\/forumias.com\/blog\/answered-what-are-cryptocurrencies-discuss-various-concerns-related-to-cryptocurrencies\/\">cryptocurrencies<\/a> instead of shutting them out.<\/p>\n<p><strong>Background <\/strong><\/p>\n<p>The government has given a statement to bring a law on cryptocurrencies. It is a positive step. Considering the fact that there is a doubt about the legality of cryptocurrencies in India.<\/p>\n<ul>\n<li>The doubt exists despite the government has suggested that it <strong>does not consider cryptocurrency to be a legal tender.<\/strong><\/li>\n<li>The reason behind this disapproval is that such <strong>currencies are highly volatile, used for illegal Internet transactions<\/strong>.<\/li>\n<li>Also, these currencies cannot be regulated as it is completely lying outside the domain of the state.<\/li>\n<\/ul>\n<div class=\"content-box-green\">\n<p><strong>RBI\u2019s decision on cryptocurrencies<\/strong><\/p>\n<ul>\n<li>The RBI sent a circular to banks and asked them <strong>not to provide services for those trading in cryptocurrencies in 2018.<\/strong><\/li>\n<li>However, <strong>the Supreme Court found the circular to be disproportionate.<\/strong> This is for the reason that virtual currencies were not banned in India.<\/li>\n<li><strong>RBI also not able to provide strong evidence<\/strong> that units regulated by RBI were harmfully impacted by the exchanges dealing in virtual currencies.<\/li>\n<\/ul>\n<\/div>\n<p><strong>What is the challenge in regulating cryptocurrencies in India?<\/strong><\/p>\n<p>The Minister of State for Finance Anurag Thakur highlighted the difficulty in the regulation of cryptocurrencies.<\/p>\n<ul>\n<li><strong>Regulatory bodies<\/strong> like RBI and SEBI etc <strong>don\u2019t have a legal framework<\/strong> to directly regulate cryptocurrencies.<\/li>\n<li><strong>Cryptocurrencies are difficult to regulate<\/strong> as they are neither currencies nor assets or securities or commodities issued by an identifiable user.<\/li>\n<li><strong>Cryptocurrencies have a growing client base<\/strong> in India despite having legal uncertainty. Their attraction may only grow now as Bitcoin has hit new peaks in price and is gaining influential followers such as Tesla founder Elon Musk.<\/li>\n<\/ul>\n<p><strong>Suggestions on cryptocurrency:<\/strong><\/p>\n<ul>\n<li><strong>Smart Regulation of the cryptocurrency is a much better option<\/strong> than getting banned directly. Because a ban on blockchain-based technology (having scattered record) cannot be implemented practically.<\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>For example, China has banned cryptocurrencies and has a controlled internet; even then trading in cryptocurrencies were happening in a small amount.<\/li>\n<\/ul>\n<\/li>\n<li>The inter-ministerial committee has <strong>recommended an outright ban.<\/strong> On the other hand, it highlighted the<strong> need for an official digital currency<\/strong> and for the promotion of the underlying blockchain technology. So, the government <strong>can ban<\/strong> the cryptocurrency and <strong>release an official digital currency<\/strong>.<\/li>\n<\/ul>\n<p><strong>The way forward<\/strong><\/p>\n<p>The government must resist the idea of a ban and push for smart regulation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The Hindu Syllabus: GS 3. Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment. Synopsis: The government should ensure a smart regulation of cryptocurrencies instead of shutting them out. Background The government has given a statement to bring a law on cryptocurrencies. It is a positive step. Considering the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/crypto-currencies-in-india\/\">Continue reading <span class=\"screen-reader-text\">Cryptocurrencies in India<\/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":[1230,9],"tags":[1278,1413],"class_list":["post-82407","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-eco_4","tag-st_5","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704813198},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/82407","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=82407"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/82407\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=82407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=82407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=82407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}