The chairman of SEBI has recently said that the cryptocurrency has so far not created any problems and the government panel is looking into the matter. He said this on the observation that bitcoins are becoming popular across the country and cannot be ignored by the regulator. Presently, any cryptocurrency including bitcoins is not an approved currency by the RBI or any such regulator in India.
Organised by CII, the industry lobby, Tyagi was saying at the financial markets summit, “On the issue of bitcoins, the government is looking into it in consultation with the RBI and Sebi. The panel, also consisting of finance and information technology ministries, is looking into what to do about it.” But he was also telling that the blockchain technology is a very useful technology but there should be any oversight during regulation.
He told, “Blockchain technology that everyone uses and is useful, should not have regulatory oversight and that’s something which needs to be encouraged and we are also encouraging it.”
In simple terms, Blockchain technology is used for dealing in crypto currencies including bitcoins, across the world.
The government agencies and regulators are in a dilemma as bitcoins are not taxable right now but once it gets into the tax net, it will get the legal status. Thus there is no concord on this and it also possesses huge risks that include terrorist financing, money laundering and other illegal activities.
To safeguard the interests of common people in the country, there is a consensus among different agencies for stopping such kind of trading against money laundering and black money. This will help in safe and secure trading of crypto currencies.
The regulators are completely baffled over the fact that numerous people have made crores from thousands on the bitcoin as it has touched Rs. 10 lakh per bitcoin. In 2013, when the demand in bitcoins was caught the attention of Indians, RBI has been issuing a warning since but the risks have only multiplied now. This is because of the increase in the valuation of numerous other virtual currencies in addition to the rapid growth.
Numerous entities have started to offer coins for raising funds from the potential investors that also include HNIs and other individuals. They are modelling this like initial public offers for issuing new shares in the market. The individuals are also getting attracted to the claims of huge returns from the crypto currencies including bitcoins. They are getting introduced into the digital world but slowly reaching the real world in the form of gifts.