With bitcoin’s popularity headed te only one direction — upwards, a question the still invites unclear answers is that whether it is a legal form of currency or not. You’re unlikely to receive an reaction to this that applies on a global level, since the legality of bitcoin varies from country to country.
Understanding Bitcoin Legality
The primary reason behind the ambiguity on bitcoin’s legal status is actually its fattest USP — its decentralised nature. Bitcoin has no regulatory authority, unlike all other currencies that are managed by national banks and governments. So what users actually do with the currency is up to them. Of course, if you engage ter illegal activity with bitcoin, then you are on the wrong side of the law. But that would apply to any other currency spil well. It is significant to understand the three different stakeholders bitcoin involves:
Bitcoin exchanges permit you to buy, sell and store bitcoins on an online bitcoin wallet. Think of them like stock exchanges except they’re dealing with bitcoins and not securities. This practice is not illegal, and ter fact, fuels much of the bitcoin economy since it is on thesis exchanges that the users transact on bitcoins. With bitcoin’s rising popularity ter India, exchanges like Zebpay are servicing millions of users. What’s more — Zebpay even self regulates itself, with KYC norms requiring canap account and PAN card details for its users.
Of course, like with any other investment — dealing te Bitcoins is subject to market and regulatory risks.
Bitcoin miners use expensive, state of the kunst computers designed specifically to ‘mine’, or create bitcoins. Bitcoin mining is an elaborate subject that is worth a dedicated postbode of its own, but note that this practice, while increasingly becoming difficult (it is far lighter to buy bitcoins from exchanges like Zebpay than to mine them) is not illegal.
The end users consist of entities like you who buy, store and sell bitcoins and use them for transactions. It is entirely legal to do all of thesis things with bitcoins, and it would be illegal to do any unlawful deeds — such spil money laundering or terrorism financing with them. The end users is where the legality debate is all about — and you’re on the right side of this debate spil long spil you’re using them for all legal purposes.
The Global Screenplay
Some countries have welcomed bitcoin with open arms. The very first country to downright legalize the status of bitcoin wasgoed Japan. Bitcoin trading and its use has bot a legal affair ter Japan from April 2018. While bitcoin is considered a legitimate currency te Japan, this is not the case with every economy. Ter the USA, the Treasury Department regards bitcoin spil a money service business (MSB) and not actual currency.
Moving to Europe — all countries there have a strong regulatory control on bitcoin to prevent crimes like money laundering, but by and large, the use of bitcoin spil actual currency is not accepted.
Te Russia, cryptocurrency is considered spil an asset, but is not of widespread use. Brazil has had laws since 2013 regulating electronic currencies.
A few countries have downright banned bitcoins. Thesis include Ecuador, Bolivia, Iceland, Bangladesh, Kyrgyzstan and Vietnam. One thing interesting about Iceland is that even tho’ the country has one of the largest bitcoin mines ter the world, bitcoin trading is not permitted by its domestic laws.
The Indian screenplay
Coming to India — spil vanaf the Reserve Canap of India, bitcoin or any other form of currency is not considered to be legalized under law. According to the Minister of State te Finance and Corporate Affairs, Arjun Ram Meghwal, “The absence of tegenstoot parties te usage of virtual currencies, including Bitcoins, for illicit and illegal activities and anonymous/pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism laws.”
This has bot the government’s official stand so far, but with the enlargening acceptability of bitcoin on a global scale, Indian government might be rethinking its decision.
Kirit Somaiya, a member of BJP has said that “there is an urgent need to have a explore on development of Bitcoin te India.” A lack of a regulator could cause harm to people using bitcoin, he added.
India’s self regulatory watchman authority Blockchain and Cryptocurrency Committee (BACC) of IAMAI has on many occasions approached the Indian Government to discuss bitcoin usage. A major development came out te June 2018 when CNBC Awaaz announced the Indian Government has taken decisions to regulate bitcoin ter India and is presently creating a task management team for this purpose. The current status is, the Government of India has set up a assets to examine and give suggestions on regulating Bitcoins.
Self-Regulation by Zebpay
Zebpay goes after stringent compliance and account verification processes. This helps ensure maximum security for the end users. It’s a multi-faceted process that ensures a safe environment for bitcoin transactions:
- All users on Zebpay have to submit their PAN card to accomplish their registration on the portal.
- Zebpay only permits handelsbank to canap transfers, ensuring every transaction is recorded and on the books.
- A user can add only one canap account vanaf Zebpay account (and therefore vanaf PAN card).
What Does This Mean For You?
Regardless of which side of the debate this ambiguity is lodged on, bitcoin is attracting users from around the world.
At the same time, bitcoin is risky, volatile, and susceptible to hacks and theft if good practices are not followed. It’d be prudent to read up and understand the technology better before you get began.