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status of bitcoins in India?

what is the status of bitcoins in India? Are they banned??

Comments

  • What I know, a bit rusty on current affairs:

    Not banned.
    Not regulated.
    RBI has cautioned users against using such currency.
    Bitcoin exchanges and bitcoin-based startups also exist.
    Recently Ratan Tata invested in one, don't remember which.

    Blockchain is important. Can be used in a myriad ways.
    Banks are experimenting with its adoption for reducing transaction costs and improving the transaction structure.

    Yesterday, a company made a stock blockchain source code public, enabling users to customize blockchains as per their needs.
    Prelims: 4. Mains: 2*. Interview: 1. Rank: NA.
    Literature of English Language.
    "Only through time time is conquered."
  • In 2013, the Reserve Bank of India (RBI) had cautioned the users, holders and traders of virtual currencies, including bitcoins, about the potential financial, operational, legal, customer protection and security-related risks that they could expose themselves to (http://bit.ly/2cpQmkz). “The creation, trading or usage of virtual currencies including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority,” RBI had stated.

    In an email on 22 September,the RBI told Mint that the central bank’s stance on these currencies has not changed.

    Two years after the 2013 cautionary note, in December 2015, the RBI spoke about looking into blockchain—the underlying technology of bitcoin. And in June this year, it spoke about setting up a committee to study the benefits of blockchain technology for banks.

    “It’s not easy to regulate a technology that is as disruptive as bitcoin, since it’s highly decentralised. But we know for a fact that the RBI is not ignoring bitcoin and blockchain technologies, and intendS to regulate it. Last heard, the RBI is aiming to regulate crypto-currencies by 2017,” said Mohit Kalra, chief executive officer and founder, Coinsecure, a Delhi-based bitcoin exchange and trading platform.
    I am not quiet, I am plotting.
  • I trade in bitcoins. It is not banned nor its gonna happen in future. Blockchain technology is the future and in near future you may see banking institutions adopting blockchain technology.Recently ICICI has started some thing with blockchain technology.(no detail info.) Recently its prize hovers around 45000 i.e 1bitcoin= 45k. In future many outlets will start accepting bitcoins. it is step towards digital economy. and as @DrKingSchultz said RBI has formed high level committee to study feasibility of bitcoin for indian economy.
  • So, if Bitcoins are legalised in India, the following would happen:

    Bitcoins would fall under the purview of RBI’s 1934 Act.
    Bitcoin investors would be taxed.
    RBI would issue guidelines regarding investment and purchase of Bitcoins.
    If any foreign payment is made through Bitcoins, it would fall under the purview of FEMA Act.
    Returns from investment in Bitcoins would be taxed.
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