Regulation in India: Bitcoin Regulation Is Essential for Legitimacy in India

A popular economist from India believes that bitcoin regulation is essential so that it can turn into a legitimate currency in the state. Dr. S.P. Sharma Ph.D, Chamber of Commerce and Industry chief economist, spoke to the Economic Times (Indian business daily) and wondered how possible it was for bitcoin to turn into a regular legal currency without regulation and supervision.

India’s economy is developing fast and India is fast adapting digital payments as a section of a cashless venture initiated by the central state. This started the previous year with the exceptional cash prohibition. There is a noticeable development of the local bitcoin industry within a general rise in knowledge and embracement of the cryptocurrency in the last few years, in spite of the absence of a ‘legal’ standing in the state.

But, it is evident that bitcoin is not unlawful either. ‘It is just to state that presently, the cryptocurrency is not unlawful nor lawful in India,’ said Dr. Sharma. He also said that ‘Unless there are correct and total regulation and supervision of cryptocurrency by a strong institution, I do not think bitcoin will turn into a legal Indian currency.’ Presently, authorities in India are making efforts to obtain a regulatory and lawful future for cryptocurrencies. At the beginning of this year, the Ministry of Finance in India confirmed the creation of a ‘virtual currency committee,’ whose role is to recommend a structure for bitcoin as well as different digital currencies.

The committee meets representatives from numerous state ministries such as the state’s taxation authority together with the ones from the central bank.

Below is the work of the committee:

  • Assessing the current condition of Virtual Currencies in India and worldwide.
  • Checking the present worldwide regulatory and legal organizations leading Virtual Currencies.
  • Propose steps to deal with Virtual Currencies like these such as matters connected to consumer security, cash embezzlement, etc. and
  • Go through any other issue connected to Virtual Currencies that might be important.

The theoretical result will possibly see the regulation of the local bitcoin by Indian authorities with slim prospects of a prohibition. Regulation of the sector will also possibly correspond with bitcoin adopters taxation in the overall public.