Tag Archives: virtual currencies

ILN Today Post

Virtual Currencies – An Enigma for Indian Authorities

In the present times, where trading and dealing in virtual currencies (“VCs”) such as Bitcoins, is surging at an extraordinary rate with astonishing highs and lows, the question of recognition and regulation of VCs under the Indian laws still looms in a cloud of confusion. After several advisories of the Reserve Bank of India (“RBI”), which has till date stood short of declaring VCs as illegal, and subsequent raids reportedly conducted by the Enforcement Directorate against operators of trading platforms of VCs in India (as already discussed in our previous updates1), the Income Tax (“IT”) department and the Securities Exchange Board of India (“SEBI”) are now considering to crack down the unregulated reign of Bitcoins. 

Read full article
ILN Today Post

Lithuania Disappoints Fintech Sector With Virtual Currency Crackdown

Comments of TGS Baltic Associate Donatas Šliora in Paymentscompliance.com article:
 
Lithuania: Central Bank Reveals Its Position On Virtual Currencies and ICOs

Regulators in Lithuania have broken from their fintech-friendly reputation by issuing tough restrictions on businesses using virtual currencies such as Bitcoin.

Last week, the Lithuanian central bank issued a notice deterring its financial sector from engaging in virtual currency activities, amid fears that profiteering from the “high risk instrument” could result in customer detriment.

Read More

Read full article
ILN Today Post

Future of Virtual Currencies in India

The legal status of virtual currencies (“VCs”) such as Bitcoins continues to be debated as it remains unrecognized in India.

The Reserve Bank of India (“RBI”) in the past had issued several advisories clarifying that creation, trading or usage of VCs, as a medium for payment are not authorized by any central bank or monetary authority in India and entails various risks, but RBI stopped short of declaring VCs as illegal. However, pursuant to issuance of these advisories, the Enforcement Directorate did reportedly conduct raids against operators of trading platforms of VCs in India, creating an atmosphere of regulatory uncertainty for the VC industry. In absence of any clear direction or regulation by the Government, the matter of VCs seems to have remained in an uncertain limbo riddled with regulatory pitfalls.  

Read full article
ILN Today Post

Legal status of virtual currencies/cryptocurrencies in India

  1. INTRODUCTION. 

1.1.         Unlike the traditional form of currencies issued by government/banking authorities, virtual currencies (“VCs”) such as Bitcoin are a form of cryptocurrency/digital currency, ‘issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community1, and which relies on cryptography for its creation and management.

1.2.         In this digital age, trading and transacting in VCs such as Bitcoins has reached an alarming proportion and the question of recognition and regulation of VCs is therefore a question that governments have been grappling with over the last few years. India is no different, and this newsletter is an attempt to provide a brief overview of the legal status of VCs in India. 

Read full article