India does not recognize BTC as a currency, and does not collect BTC transaction data

India continues to flirt with Bitcoin and other cryptocurrencies. The winter meeting of the Indian Parliament has begun, and it turns out that BTC will not be the protagonist of the show. In fact, the Lower House of Parliament asked the Minister of Finance if he had proposed to recognize Bitcoin as a currency. The answer is a resounding “no”.

according to To AMB encryption:

“Although it will become clearer in this case, some reports claim that the Indian government is planning to provide cryptocurrency as an asset. In addition, others suggest that cryptocurrency will not be accepted as legal tender.

All of this information appears in the form of a note.exist The document, Ministry of Financer also answered “Does the government allow cryptocurrency exchanges as entities permitted by Indian law”:

“Cryptocurrencies are not regulated in India. RBI has issued its notice dated May 31, 2021, recommending its regulated entities continue to perform customer due diligence in accordance with Know Your Customer (KYC) and Anti-Money Laundering (AML) management standards Investigation process.”

So, as you have read, it is the same as the old script used in other countries. If so, what is the cause of all the confusion?

Mixed signal from India

NewsBTC has been dealing with this case.Just three weeks ago, in the discussion Significant growth in Indian exchanges, We optimistically say:

At that time, discussions around regulations began. Indian cryptocurrency exchanges and investors participated in informal meetings with law enforcement agencies and banks, hoping to reach a level of friendliness.

It is expected that the government will classify Bitcoin as an asset class, and the Securities and Exchange Commission of India will supervise and clarify cryptocurrencies, closing the door to another ban. “

However, just a week ago, we reported that the Reserve Bank of India “is It will launch its CBDC in December.“What is the flavor of that news? Of course it is a ban:

“Recently a bill was proposed that will shake up many of India’s big-name coins. The “Cryptocurrency and Official Digital Currency Regulation” bill will create a convenient framework for the official digital currency issued by the Reserve Bank of India, which will prohibit all private encryption Currency, including Bitcoin and Ethereum.”

Considering that this is a fair conclusion. In early 2018, the Reserve Bank of India prohibited entities under the jurisdiction of RBI from buying and selling cryptocurrencies.

BTC price chart on BinanceUS | Source: BTC/USD on

What is the current position of the Indian Parliament?

The headlines of recent meetings with the Minister of Finance are these two. There is no proposal to recognize Bitcoin as currency, and the government does not collect data on Bitcoin transactions. Fortunately for them, the blockchain is an immutable ledger. They don’t need to collect anything, it’s there.

In any case, AMBcrypto treats it as:

“A vital piece of information, especially because some institutions related to the ruling party call for central supervision of encryption. For example, Ashwani Mahajan, the co-convener of Swadeshi Jagaran Manch (SJM), once suggested that only encrypted data for mining and transactions Stored on domestic servers.”

In the same report, AsiaNews International saw another angle. “This is a risky area, not within a complete regulatory framework. No decision was made to ban its advertising.”

At another stage, former Finance Minister Subhash Garg clarified the problem. The bill he made seems to be aimed at banning all cryptocurrencies in India. telegraph report:

“In an interview with the local news channel News 18, Garg clarified:

“[The description of the crypto bill] Maybe it was a mistake. It is misleading to say that private cryptocurrencies will be banned and to suggest the same to the government. “

Therefore, what he refers to as “private cryptocurrency” does not refer to Bitcoin or Ethereum that has a public blockchain. understood.

Nevertheless, India’s confusion over cryptocurrencies is the main topic here. They don’t seem to know what to do with those pesky coins over there.

Featured Image: Darshak12Pandya on Pixabay | Charts by TradingView

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