Cryptocurrency: Center may recognize digital currencies like Bitcoin, Ethereum
Cryptocurrency in India: The use of cryptocurrency is not illegal in India right now. The government is currently on the path of moderation with the legal position of digital currency. According to sources, the new bill may also be passed in Parliament for the purpose of better regulation of digital currency across the country.
Last year, the government took a hard line on the use of cryptocurrencies. The Center intended to legally ban cryptocurrency. Not only was it banned, but the government also proposed to bring businesses with such cryptocurrencies or exchangeable virtual currencies under a punishable offense. A related bill was also proposed in the parliament before this year’s central budget. However, this year the position of the government has changed drastically. According to a recent report in the Economic Times, the Center could turn cryptocurrency into a digital asset by going a step further than banning it. However, there are a number of rules and restrictions that can be applied to protect investors.
Legal pressure on virtual currency is not new in India. Many questions have already been raised about the legal validity of digital currency. Although not so-called illegal, since the currency is not regulated by the central bank, the risk of theft and counterfeiting is quite high. As a result, the whole crypto world was looking at the proper legal incorporation of digital currency. Demands were also made to give crypto the status of a fully legalized currency. While the recognition of the country’s common currency as an elusive currency is elusive, the prospect of Bitcoin and Dodgecoin being labeled as ‘digital assets’ has also brought a lot of relief to domestic crypto-traders.
The growing popularity of cryptocurrencies across the country can be attributed to such sudden changes in the Centre’s decision on crypto. At present, the number of crypto investors in India exceeds 15 million. Besides Bitcoin and Etherium, the youth of the country are also leaning towards Altcoin like Dozcoin and Shiva Inu. The government has opted for a moderate approach, fearing that the legalization of digital currency could have a detrimental effect on the large number of crypto-dependent populations.
According to the source, the Union Ministry of Finance is planning to draft a new bill to keep pace with the various technological advances in the digital world and to judge all the pros and cons of cryptocurrency. However, some rules may apply to who or what is suitable for using crypto. Free internet transactions at home may not be possible from now on, even if you have internet, smartphone or laptop.
In the 2022 Union Budget Session, if the bill is passed in Parliament, cryptocurrency transactions will be legal in the country, but it will never become a substitute for Indian currency. Therefore, in the case of trading, Bitcoin and Dozcoins are still in vogue.