Friday, June 9, 2017

Bit Coin in India; Legal or Illegal !!!

Bitcoin is in the news for a lot of reasons these days. A form of digital currency, created and supported electronically is named as BitCoin. Bitcoins are not a printed form of currency; they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. Bitcoin is a cryptocurrency system invented by an unknown programmer or a group of programmer’s. It was released by an unknown programmer under the name of Satoshi Nakamoto as open source software.

This system is peer to peer and transactions take place with users directly, without any intermediary. These transactions are confirmed by network nodes and recorded in a public distributed ledger called a block chain. The system works without a central repository or single administrator. Because of this, bitcoin is called as the first decentralized digital currency.

As of February 2015, over 100,000 merchants and vendors agree to receive bitcoin as payment. According to a research created by Cambridge University in 2017, there are 2.9 to 5.8 million individual users using a cryptocurrency wallet, most of them using bitcoin.

Bitcoin is acquiring 300 percent increase in its value within one year. It could be the kind of investment you may be looking for. However, in animosity of all the curiosity, many of us have wondered if it is safe to accept, store and sell bitcoins in India.

Bitcoins can’t be minted like paper currencies.  They can only be mined. There are 21 million bitcoins been created and only 16.8 million or 80 percent of all bitcoins have been mined.

How to buy Bitcoins:-

You can use various digital currency exchanges to buy bitcoin. Credit card can be used for purchase of bitcoins. In India, you can purchase Bitcoin from Zebpay exchange. Zebpay has Android and iPhone app which lets you link your bank account for quick transfers.

Buying Bitcoins can be made by making a payment to Zebpay's bank account. And can also withdraw the money to your bank account, and can track the data on Bitcoin valuation in the country.

Legality of Bitcoins in India:-

Bitcoin accepting, selling, trading or mining is not illegal by any existing law in India, however, it is not yet officially recognized in India. The Reserve bank of India or the RBI, had earlier cautioned users, holders and traders of Virtualcurrencies (VCs), including Bitcoins.

The central bank had declared that the trading or usages of virtual currency, including bitcoins are not approved by any central bank or monetary authority. It can’t be used as medium for payment.

RBI Deputy Governor R Gandhi warned against crypto-currencies such as Bitcoin. He informed as the Bitcoins possess potential financial, legal, customer protection and security-related risks. Payments by Bitcoins are on peer –to- peer basis and there is no established framework for recourse to customer problems, disputes, etc. There is no legal status for Bitcoins.

At the same time Bitcoins are not banned in the country by the central bank.  But not authorised by the central bank of India.

For online legal consultancies from the best lawyer to know more about Bitcoins and its legality visit the biggest online legal solution or can download the app  

1 comment:

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