Status of Cryptocurrency in India- Legal or Illegal or Alternatives? - Must Read

Hi Friends,

People who are not aware about current situations going in India must read this post as I will discuss about possibilities and current scenarios being faced by Indian Cryptocurrency Investors:

Reserve Bank of India (RBI) has released a circular on 6 April 2018 which States:

"Indian Banks must withdraw their services (INR deposit/Withdrawal) and end all relationships with exchanges or investors which are dealing in virtual currencies (Cryptocurrencies) with in 90 days "

In regarding to this, a hearing was done with IMAI (Internet and Mobile Association of India) in Supreme Court on 3rd July 2018. But Supreme Court has refused to grant stay on RBI circular which complete its 90 days on 5 Jul 2018. Instead of this, Supreme court has asked RBI to revert back within 7 days in regards to this.

Whereas on the other side, Secretary of Dept of Economic Affairs, Subash Chandra Garg has said:

" We have almost completed the template and drafted that which part we need to regulate and which need to be restricted. We have planned to reveal the Template by the Mid of July"

Next hearing in Supreme Court will be on 20 July 2018 which will be combined hearing against petitions filled by various Cryptocurrency Exchanges. For now, cryptocurrencies are not illegal in India and there is no chance of doing it in upcoming future, in this evolving world of Technologies. They are just not a legal tender which means we cannot by a product or service using cryptocurrencies in India for now but we can trade in virtual currencies (Buy/Sell cryptocurrencies).

New Possibilities :

Indian Cryptocurrency Exchanges has now found an Alternative named as Peer-to-Peer Cryptocurrency Trading Platform. Wazirx, Koinex(as Koinex Loop) and Coindelta(as Flux) has announced that, once the Banking services will be stopped they are ready to launch the P2P Trading Platform.

How it Works?

Peer-to-Peer exchange is a platform which will include a Escrow Account which will act as Bridge between the Buyer and Seller. Whenever a Seller wants to seller their tokens, they will send the token to the respective address which will be locked in Escrow Account. Now buyer will send the INR amount directly to Seller's bank Account. Once the Seller confirms that INR amount received, Tokens will be released and sent to Buyers Wallet Address.

Note that anonymous users cannot Buy/Sell using these platforms because these platform can be used only by KYC verified Users on respective exchanges.

Hope you find this content useful. Please let us know about your opinions and give valuable feedback in comments section.

Thanks,
Team Success Perks