TURNING POINT FOR BITCOIN & CRYPTOCURRENCIES IN INDIA

INDIA ON ITS WAY TO LEGALIZE BITCOIN & OTHER CRYPTOCURRENCIES

The circulation of Virtual Currencies (Digital/Crypto Currencies) has been a cause of concern in India. This has been expressed in various fora from time to time. Reserve Bank of India had also cautioned the user’s, holders and traders of Virtual currencies (VCs), including Bitcoins, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to vide it’s press releases dated 24th December, 2013 and 1st February, 2017.

In order to examine the existing framework, Department of Economic Affairs, Ministry of Finance has constituted an Inter- Disciplinary Committee chaired by Special Secretary (Economic Affairs).

The Committee will
(i) take stock of the present status of Virtual Currencies both in India and globally;
(ii) examine the existing global regulatory and legal structures governing Virtual Currencies;
(iii) suggest measures for dealing with such Virtual Currencies including issues relating to consumer protection, money laundering, etc; and
(iv) examine any other matter related to Virtual Currencies which may be relevant.

The Government of India (GOI) has asked its citizens to comment/suggest their views on cryptocurrencies by 31st May, 2017.

It is observed that more than 97% of the comments/suggestions recieved by the GOI are favourable.