According to a major newspaper of India finally the central authorities of India has admitted that there has been “notable growth” in Bitcoin market in India over the last few years.
Jaitley told the Loksabha there are evidences that Bitcoin and Cryptocurrencies are used widely in India. As there are no governing regulations for using Bitcoins in India, Reserve Bank of India had advised in february this year that they have not given licenses/authorisation to any company/entity to operate or deal in this sector.
Jaitley said majorly there are two types of group operating in India, one in Public domain and one operates in unorganised manner through social media sites and apps. Those who operates in Public Domain are mainly exchanges and traders.
RBI has been continuously cautioned users, traders and investors about operational, legal, financial, customer protection and security risks involved.
After considering increasing concerns about virtual currency, its regulatory challenges, the Department of Economic Affairs have created a committee for this issue.
Representatives of Department of Economic Affairs,Department of Financial Services, Revenue Department, Ministry of Home Affairs, Ministry of Electronics and Information Technology, Reserve Bank of India, NITI Aayog and State Bank of India are given the task to look after the current state of cryptocurrencies in both markets, India and Global. Examine the existing regulatory and legal framework of various virtual currencies governing countries and suggest the regulation and legal structure to implement in India if considered issues related to customer protection, taxation and money laundering.
If cryptocurrencies are regulated in India under govt norms, it would provide a huge market to various blockchain based platforms and crypto economy will see a major boost.Let’s just hope for the best.