The Government of India is looking for a way to go about the regulation of bitcoins and other crypto-currencies in the country.
The government aims to adopt a regulatory framework that will enable it to observe the activities of exchanges that deals in Bitcoin trading, in order to protect the interests of investors, as they trade in the new system of monetary exchange.
According to reports emanating from India. The government is working with the ministry of finance, law and information technology in order to find a way around this. The reserve bank of India and market regulators are working on answering the petition sent seeking clarity on the legality of cryptocurrency in the country.
Bitcoin isn’t classified as a legal method of payment or a financial instrument in India. The official release by the central bank, reveals the authority hasn’t licensed or authorized any companies dealing with bitcoin. Investors or adopters of bitcoin and cryptocurrencies would be doing so at their own risk, the central bank warned. All the same, bitcoin isn’t illegal in India, either.
Bitcoin technology is a new entrant in the financial sector and it’s just gaining attention although it has been around for over a decade. Most people don’t understand the concept wholly and little information or regulation might lead to distrust or scare the investors away. One of the major beauty of the coin is that it is decentralized and doesn’t respond to any governmental policy. Regulation of the coin might lead to a decline in the adoption of digital coin by the Indian crypto populace.
Bitcoin is presently experiencing a lightning run, it’s still in the experiment stage, and no one can predict its future accurately whether it will be hit or miss. The regulation of the coin without a strong law and regulation can lead to the coin being used for illegal activities and drug-related activities.
At present, the majority of investors trading Bitcoin are doing so for speculative purposes only – not to make any payments. And investing in Bitcoin is very risky, owing to the lack of technological security and the fluctuating price of the currency. Thus, by regulating it, the government will be arguably encouraging high-stakes gambling.
It is almost an effort in futility to regulate Bitcoin. No central bank can dictate the production of cryptocurrency as the coin are mined by individuals. The government might be expending its energy on a fruitless mission. An effort that can be geared towards other fruitful policies.
Been trying to do that for years, before it became popular.
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