Wednesday, April 18, 2018

Bitcoin Ban in India (What to Do If It Happens?)

Will Bitcoin rise again? Yes, it will— stronger than ever. After the meteoric rise in November and half of December, this correction was rather very much expected. It was essential, in fact, to its growth.
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Is Bitcoin Ban in India or Not
Check this theory out. (Via. Some Twitter guy)
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Bitcoin Price History

Also, here’s Bitcoin Price Prediction 2018. Read and see what experts are forecasting.

UPDATE: Did RBI Banned Bitcoin in India

Is Bitcoin Banned in India?

Coming back to the topic, as mentioned in the title. If you’re one of many wondering is Bitcoin ban in India or not, here’s a simple answer.

NO. NOT YET.

(Read in detail: Is Bitcoin Illegal in India + Read it in Hindi)

However, now the question comes, what if it happens? What if Bitcoin becomes illegal in India? Because let’s admit it: can Bitcoin be banned in India? Yes, it can happen.

After all, past September, Chinese authority shut down domestic Bitcoin exchanges. Only last week, South Korea announced that it will take strict measures to stop local cryptocurrency exchanges.

Difference between ‘Illegal’ and ‘Ban’

Now note, before we proceed, here’s a thing to understand. In the mentioned countries (China and South Korea), and few others, Bitcoin is NOT ILLEGAL.

The governments have just banned the local exchanges. They didn’t put any ban on cryptocurrency trading itself.

No one has made Bitcoin or other digital assets illegal. People are good if they own Bitcoin, as long as they are buying/selling/trading it on foreign exchanges.

So in short, both in China and South Korea, Bitcoin is legal. Only the domestic exchanges have been banned. The nationals can easily buy and sell using international exchanges.

On the other hand, countries like Bangladesh and Nepal—they have made Bitcoin ILLEGAL. Meaning, not only have they shut down local exchanges, they also have laws to punish anyone who gets involved in Cryptocurrencies.

Yes, if you’re in Bangladesh, you can be sent to jail if you’re buying/selling Bitcoin! :O
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Bitcoin Banned Countries

What Will Indian Government Do?

Like mentioned, Bitcoin is unregulated in India right now. So it is not possible to answer questions like ‘when Bitcoin ban in India’ or ‘will Bitcoin ban in India’.

There are 3 things Indian authorities can do with the cryptocurrency market:
  1. Regulate it (Like Japan and USA have done)
  2. Ban local cryptocurrency exchanges (Like China and South Korea have done)
  3. Make it illegal and make investing/trading punishable (Like Nepal and Bangladesh have done)

Can Bitcoin Be Made ILLEGAL in India?

Option 3 is very unlikely. Because, believe it or not, this phenomenon is already too big to completely stop. Did you know:
  • 10 percent of world’s Bitcoin transactions take place in India. This means….
  • 1 in every 10 Bitcoin transaction is happening in India. 
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Bitcoin Craze in India (Via. Quartz)
However, if it ever happens that Bitcoin is made illegal in India, the top exchanges would likely give their customers the chance to either transfer their Bitcoins to other wallet or cash it out.

You can transfer the amount to foreign exchange (like Coinbase) and continue making money. But this would be quite risky if the Indian government actually makes buying/selling Bitcoin a punishable crime.

So you’re better off cashing your money right away!

Also Read: Top 15 Bitcoin Exchanges in India

Can Indian Government Shut Down Local Bitcoin Exchanges?

Option 2 is very much possible. The government can shut down Bitcoin exchanges. However, even this one also looks like a distant idea. Because, in recent times, many Bitcoin Indian Exchanges have emerged on the scene. Some are even backed by big names like Billdesk.

And unlike in other countries, these exchanges are much reliable and have internal regulatory bodies that ensure to keep things as lawful as possible.

If Indian authorities ban local Cryptocurrencies exchange, you will have to buy/sell/trade Bitcoin through international exchanges. And then transfer money to and from that exchange using payment gateways like Paypal. (It’s a fairly easy process!)

Also Read: How To Buy Bitcoin With PayPal

Will Indian Government Regulate Bitcoin?

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Bitcoin Regulations in India
India can regulate Bitcoin and other Cryptocurrencies in the coming months. Although RBI and Finance Minister Arun Jaitley have warned the investors about the high risks in the market, they can set regulations for the Bitcoin exchanges, as well as traders and investors. 

In March 2017, the Finance Ministry formed an inter-disciplinary committee to suggest measures on how to deal with virtual currencies. No official report has yet come out.

In June 2017, FM Arun Jaitley held a meeting to discuss matters related to Cryptocurrencies. No concrete decision was taken then.

If Indian Government regulates the cryptocurrency market, chances are that investors and traders would have to give high income tax—as much as 30 percent. (At least you’re getting 70 percent! ;))

Also Read in detail- Bitcoin and Income Tax in India

Hopefully, this post answered all your queries on is Bitcoin banned in India, what if Bitcoin becomes illegal in India, how you can trade even with Indian Bitcoin Exchanges banned, and other related question.

UPDATE: Did RBI Banned Bitcoin in India

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