The virtual currency known as Bitcoins
is increasingly being used in India that also in an unregulated and
illegal manner. Although laws and regulations are there that
prohibits the use of Bitcoins in India in their present form yet
individuals, companies and institutions are openly using the same
with great disregard to Indian laws.
Thailand has recently banned
use and dealing of Bitcoins in its jurisdictions. According to legal
experts, Bitcoins may be specifically regulated in India as well very
soon. While the trading
of Bitcoins has been suspended in Thailand due to Bank of Thailand
advisement (PDF) yet the reserve Bank of India (RBI) is
not fulfilling its statutory duties in this regard. As a result
Bitcoins are used in India for multiple purposes including conducting
medical
and surgical abortions in India.
Many Bitcoins enthusiastics wonder whether
use and dealing in Bitcoins legal or illegal in India? There
is no straight forward answer to this question but the
legality of Bitcoin in India is in doubts.
According to Praveen
Dalal, managing partner of ICT law firm Perry4Law
and leading techno legal expert of Asia, the Information Technology
Act, 2000 clearly puts Internet Intermediary under Legal Obligations
to observe Cyber
Law Due Diligence in India and to meet Internet
Intermediary Compliance Requirements.
Some Regulatory Guidance regarding Bitcoins can be
obtained from the Indian
Virtual Currency Schemes issued by RBI but Regulatory
Authorities like RBI, Medical Council of India, etc must clearly
specify the use and manner of use of digital currencies like Bitcoins
for various purposes. Bitcoins, their functionality and legality of
use in India is still a “Grey Area” till then, informs Dalal.
Those companies and websites that are accepting
Bitcoins in exchange of goods and services are doing it in an illegal
manner and they can be prosecuted and punished. It is always better
to observe cyber law due diligence before engaging with Bitcoins in
India in any manner whatsoever.
