Is Bitcoin or Ethereum or Shiba Innu or Doge Coin or any Cryptocurrencies legal in India 2021 ?

  Legalities of Bitcoin /Ethereum /Shiba Innu /Doge Coin in India 

Bitcoin transactions seem intriguing indeed, however, these transactions are fragile and prone to various threats and errors. Bitcoin transactions have a limited transaction speed. The validation of the transaction can take quite a long time, which of course is not feasible with rapid growth in the global economy and economy. It is also important to note that cyberattacks / threats in Bitcoin transactions are still a cause for concern. Since the transactions are pseudo-anonymous, most of the nodes validating the transaction could be taken over. In addition, this malicious agent can control and penetrate the basic rules of the algorithm, thereby compromising the distributed ledger, which is the main purpose of. All decentralized online transactions will be destroyed. In the absence of a central authority for these transactions, it is possible to change the transaction records, which in turn requires company validation. In addition, it is important to be able to launder money with the help of bitcoins, which can be used as a means of laundering money and for committing fraud. Let's consider the possibility of money laundering with bitcoins. To praise physical currency, we usually buy a fake car wash center and mix the dirty money with the profits from the car wash center. Similarly, in Bitcoins, we've replaced the idea of the fake car wash with the idea of gift cards. Transactions in bitcoins are pseudo-anonymous. Bitcoin only shows the transaction between one node to another, making money laundering easier. It is important to remember that there is no central authority to oversee transactions made with bitcoins. Hence, it caught the attention of "ransomware" hackers who launched cyberattacks on their targets. They started encrypting the victim's data and demanding payments via bitcoins. As we already know, Bitcoin transactions are pseudo-anonymous, it is difficult to track down these hackers. This also raises concerns about national security, terrorist financing and, most importantly, money laundering. Bitcoin is not tied to any bank or government and allows users to spend money anonymously, making transfers from cryptocurrency accounts to cryptocurrency accounts [5]. This opens up a great deal of leeway for money laundering and terrorist financing, which is a threat to the country's economy and national security, and digital assets cannot be restored even if the perpetrator is caught. As a result, bitcoins are still in the early stages of development and require certain changes to mature and become a reliable means of transaction. As in most countries, the laws of India are against the idea of bitcoins as a means of transaction. The Reserve Bank of India is primarily concerned with isolating centralized authority in online transactions. Hence, it is not recognized as a sanctioned currency. Legal tender basically means recognition by the state as a means of payment. As Bitcoin grew in popularity in the internet community, there were concerns about the country's financial stability, money laundering, and fraud. Therefore, in 2017, the Inter-Ministerial Committee (IMC) was set up by the Ministry of Finance of the Government of India, chaired by the Secretary of the Department of Commerce (DEA) of the Ministry of Finance of the Government of India to formulate policy. and legal framework for the regulation of cryptocurrencies in India. In July 2019, the IMC published its report proposing the Crypto Currency Ban and the Official Digital Currency Act Regulations of 2019, which allow the conduct of any activity related to cryptocurrencies in India, including mining, buying, selling or storing Criminalize cryptocurrencies. and its use as a means of raising funds or for investment. The above bill provides for a fine of up to 25.00.00,000 rupees / or a prison term of up to 10 years; however, this bill has not yet been approved. Hence, the lack of a specific mechanism in anticipation of the related regulatory framework has left a lot of loopholes and has resulted in a complete lack of responsibility and unregulated Bitcoin (cryptocurrency) transactions and transactions. 

 

The Supreme court of India standpoint:- 

In the case of Internet and Mobile Association of India et al (VC)) there were only goods / raw materials that cannot be considered real money. In addition, the Supreme Court ruled in the same ruling: “It is clear from the foregoing that governments and money market regulators around the world have accepted the reality that virtual currencies can be used as real money, but they have all entered a mode of denial (such as the proverbial cat that closes its eyes and thinks it is completely dark) by claiming that VCs do not have legal tender status because they are not supported by a central authority As a result, the Supreme Court is expressing its concern about the regulations governing the Bitcoin transaction. The Honorable Apex Court agrees with RBI's concerns and clarifies that RBI has the power to regulate the use of Bitcoins but cannot prohibit banking services for cryptocurrency traders, thereby legally safeguarding the Bitcoin transaction, which is a money laundering concern and terrorist financing, awaiting RBI regulations. a window for all cryptocurrency traders to launder money until the RBI authorizes a circulation to regulate transactions under the rules of Know Your Customer ("KYC") and Anti-Money Laundering ("AML"). Norms and standards will make it possible to hold the perpetrators responsible for such acts.