After the trading in bitcoins or decentralized currency has seen a sharp surge in the country, Government in consultation with other stakeholders including the several bitcoin start ups is considering its legalization. As against the consensus that "it is not something which needs to be promoted", the panel forned on April 12 is working to deal with bitcoins or virtual currency.
Minted as well as held electronically, users trade amongst themselves in these crypto-currencies with no banking intermediary in place. Both a digit asset form as well as payment system is kept in record using a blockchain technology or interface.
The penal was formed after the red flag from the RBI conformed that the trading in such virtual currencies is not authorized and money laundering issues using VCs were on the fore. The panel comprises member from Department of Income Tax, Department of Economic Affairs, officials from the Home ministry, SEBI and the RBI.
Caution on the Bitcoin front came on the sidelines of sudden spike in bitcoin price post scrapping of high-currency notes in November 2016. Know the procedure to buy and sell bitcoin in India. At present, bitcoin is trading at a price close to Rs. 1 lakh in India. Globally also a similar surge was witnessed in some nations on reasons of its legalization as a lawful payment mode. In the US, bitcoins are classified as a commodity.
Hesitant about the likely guidelines for Bitcoins, online bitcoin wallet companies are asking for easier norm such that evolution of the technology as well as the foray of new players in the set-up is not impacted. Also, to this effect, players are offering to extend their full cooperation to mitigate any money laundering issues using VCs or bitcoins.