Hong Kong Trading House Launches Ethereum OTC Trading Bitcoin RegulationNews Bitcoin in India: Legal or Illegal?Govt Could Declare Verdict in April Samburaj Das Advertisement: According to a report, the Indian government could declare its position on the legality of bitcoin, the world’s most prominent cryptocurrency, in the country on April 20.A report by regional investor publication MoneyControl has cited a government official aware of developments from an ‘inter-ministerial committee’ recently installed by the Indian Parliament to study the legality of the popular cryptocurrency.According to the source, the committee is tasked with giving its response on April 20.The report adds that a final decision about bitcoin’s legality is unlikely to materialize during a meeting of the sub-committee on April 20.Quotes attributed to the unnamed official by the publication reads: There will be more discussions; a verdict will be declared soon on the legality of the cryptocurrency in India.

As it stands, bitcoin buying, selling, trading or mining is not illegal by any law in India.Tellingly, the publication’s source also adds that any decision that ruled the cryptocurrency to be illegal in India would mean that India’s nascent but growing bitcoin industry will have to shut down.Talk of bitcoin was stoked in the Indian parliament by a politician on March 24, questioning if the cryptocurrency was a “pyramid ponzi scheme” in a wider call for regulation of the industry.The following week, a session in the Parliament continued the discussion, leading to false reports by major Indian press publications that claimed bitcoin was deemed illegal by the Indian government.The lack of regulation or acknowledgment by Indian authorities has led to the Indian cryptocurrency industry establishing its own self-regulatory body and watchdog, titled the Digital Asset and Blockchain Foundation of India (DABFI).The industry group has notably approached the Indian government to educate authorities about bitcoin and blockchain technology but has yet to receive a response.

The publication’s source also adds that the Indian cryptocurrency industry could see a positive verdict if a compliance framework and KYC infrastructure for customer data is worked upon by authorities and the DABFI.Speaking to CCN earlier in February, Sathvik Vishwanath, CEO of leading Indian exchange UnoCoin revealed that India’s central bank, the RBI, had made no efforts in reaching out to Indian exchanges toward exploring or laying the regulatory groundwork for the bitcoin industry.“It is not likely that the government, in promoting technology, innovation, and financial inclusion, will resort to a knee-jerk bank of bitcoin as such,” stated Jaideep Reddy, the technology lawyer at Nishith Desai, the law firm tasked by the DABFI to develop self-regulations of the industry.“No major economy has done this [banned bitcoin],” the lawyer added.Meanwhile, a petition raised by the Indian bitcoin industry urging Indian lawmakers and officials to label bitcoin and cryptocurrencies as legal by definition has garnered over 10,000 signatures in less than a week.

Featured image from Shutterstock.Legal The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.ethereum unitsVAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.ethereum replacement[1]:European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to ‘currency, bank notes and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity.[2][3]bitcoin most profitable pool

According to judges, the tax shouldn’t be charged because bitcoins should be treated as a means of payment.[4]According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.[5]:5bitcoin industry wikiOthers in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.[6]litecoin file locationThe European Central Bank classifies bitcoin as a convertible decentralized virtual currency.[5]:6bitcoin broker malaysiaIn July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.[7]In 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.[8]

The European Commission also notably presented a "parallel" proposal aimed at preventing tax evasion techniques as revealed in the Panama Papers.[9]In 2017 it was revealed that the proposal will require cryptocurrency exchanges and wallets to identify suspicious activity.[10]" List Your Business Find Service Near You NEW DELHI: The government today said use of virtual currencies like Bitcoins is not authorised by RBI and could result in breach of anti-money laundering provisions.The RBI has already cautioned users, holders and traders of virtual currency, including Bitcoin, about the potential financial, legal and security risks arising from the usage."The absence of counter parties in usage of virtual currencies including Bitcoins, for illicit and illegal activities in anonymous/pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism laws," Minister of State for Finance, Arjun Ram Meghwal, said in a written reply in the Rajya Sabha.