Everybody does transactions in their day-to-day life, whether be it purchasing fruits and vegetables or purchasing monthly groceries. Payment takes place everywhere either in physical form or thanks to today’s technology, you can pay via your mobile too. But when it comes to transacting virtually another major technology and resource have come into play today and that is known as Cryptocurrency. So let’s begin with getting the basic knowledge about what the word Cryptocurrency stands for?
So Cryptocurrency is a virtual currency or you can say that it is a digital form of currency stored in to your online accounts and the main or the prime specialties of Cryptocurrency is that it is secured by cryptography which makes it extremely difficult to hack. All Cryptocurrency have a decentralized network and it is totally based on blockchain technology.
Is Cryptocurrency legal in India
As far as we have come discussing and getting acknowledged about what Cryptocurrency is and how does it works so let’s change the whole scenario and lets come back to India. So the main question arises is that Cryptocurrency is legal in India or not? Let’s first start with defining some of the major issues related with cryptocurrencies are.
The first is that it can be used to transfer black money. Since the cryptocurrencies are totally online and hence no proper records, thus it can be maintained by anybody and apart from that the government can’t do anything to get the knowledge of the transactions that are taking place in the form of cryptocurrencies. Also this will boom the black market sector which is responsible for converting the black money into white. The second problem is that in India there is no proper authority or governing body that can look upon the business market of cryptocurrencies.
Indian Government on Cryptocurrency
The Indian government has to get a hold of each and every sector functioning in India and the Cryptocurrency market seems to be in out of reach of the Indian government and given the issue of people converting all their black money into white, it gives the good reason to the government to ban the Cryptocurrency in India and declare it as illegal to buy, sale or trade. Also the one major reason behind the banning of cryptocurrencies is that it can be used to increase the major terrorist activities in India.
Cryptocurrencies can be used illegally and outside the knowledge of the government and since we have very good neighbor around us who are always looking for something fishy in India, cryptocurrencies can’t be put into their hands. The finance ministry back in 2018 has clearly mentioned that as of now the Cryptocurrency is totally banned and is declared illegal to be used in any form.