Cryptocurrency, such as Bitcoin, is a digital form of currency. One major advantage of using this is that it is almost impossible to forge. This is due to cryptography being used as part of transactions, ensuring everything is more secure. Cryptocurrency is popular across the world. However, there are concerns regarding its use in India.
The current Covid-19 crisis means that worldwide financial circumstances are unstable and worryingly so. This indicates that we should issue caution when dealing with matters involving cryptocurrency, but this caution should not be limited just to this sort of money. All exchanges require careful consideration. However, the current situation in India means that it needs that extra thought.
In March 2020, the Indian Supreme Court overturned a 2018 ban on banks and other financial institutions from offering their support and services for crypto enterprises. This was a welcome relief for many. However, almost under the radar, this is now being reconsidered, putting the future of many crypto businesses at risk. Unfortunately, it seems as though the overturning of the ban is now being reconsidered. This, therefore, causes concern amongst those who have heavily invested in enterprises using or linked to cryptocurrency.
Despite the uncertainty and instability of business and finance worldwide, there has been a steep rise in the number of crypto startups in India over the past few months. This had been viewed as a promising sign for anyone keen to get involved. The reliance on the digital world during these challenging times has meant that a previously frowned upon industry for some has actually flourished. It is useful to have an understanding of the bitcoin price in INR and be able to compare it to other currencies.
As a result of this recent news, there are mixed feelings within the crypto industry. Some believe that parliament will ultimately decide to offer a permanent reprieve to the sector. They are of the opinion that it is unlikely that something that is thriving to this extent will be stamped upon.
Some also feel that the government need to be better informed about these technological developments and how these advancements will be beneficial to the country rather than a hindrance. Once they can see the benefits with their own eyes, it is unlikely that they will choose to act in a way which will prevent India from developing positively in this regard. At this stage, it is important to remember that it is currently only a note, something being discussed.
However, on the opposite side, there are members of the crypto community who are far more concerned about this potential ban. They feel that even the mention of it coming into play will put people off dealing with Indian companies utilizing cryptocurrency. This concern is understandable.
For now, it seems that the best approach to have is to be quietly cautious but also remain optimistic about the future of crypto start-ups. Of course, all decisions, when it comes to business, should be well thought out and discussed with independent business advisors, if possible. In that respect, nothing has really changed.
*****
Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
Author Bio
