The RBI's Ban On Cryptocurrency: Is It Legal And Binding?

Many Investors consider Bitcoin to be the original cryptocurrency founded in 2009 by a programmer under the pseudonym Satoshi Naktoma. Bitcoin ushered in a new age of blockchain technology and decentralized digital currencies.

The Birth of Bitcoin:

On 3rd January 2009 the Bitcoin network was created when Nakamoto mined the starting block of the chain, known as the genesis block. Embedded in the coinbase of this block was the text “The times 3^rd|Jan|2009”

Price and Value:

By May 2010, Bitcoin was valued at $0.01. By 2012, there was an increase by $350 to $1242, step by step. Research suggests that Nakamoto has a chest containing as much as 1.1 million BTC, likely spread across multiple wallets.

Bitcoin Price Cast And Long Term Price Predictions:

	High	Low
2021	$140,000	$17,000
2022	$140,000	$42,000
2023	$100,000	$63,000
2024	$500,000	$275,000

 The value of currency has changed over centuries from physical attributes to the velocity of its use in an economy. Bitcoin demonstrates some attributes for a currency but its main source of value lies in its restricted supply and increasing demand.

4 Types Of Crypto Currency:

• Proof of work (pow).
• Proof of stake (pos).
• Tokens.
• Stable Coins.

Cryptocurrency In India:

In 2018, Reserve Bank of India (RBI) placed a ban on financial services to customers who dealt in cryptocurrency. The Government Of India has largely left cryptocurrency alone. Meanwhile the volume of cryptocurrency transactions in India as increased steadily over the last few years. Indian citizens will no longer be allowed to hold that trip to assets on foreign exchanges or in private wallets, according to the cabinet note scan by NDTV.

Finance minister Nirmala Seetharaman announced that India will tax on digital assets 30% with no deductions or exemptions from April 1^st 2022.

The Crypto Currency controls by RBI:

The saving provision is inserted potentially to avoid India’s digital rupee or Central bank Digital Currency (CDBC), ie., the proposed digital currency to be introduced by the Reserve Bank of India (RBI) was made a subject of tax regulation under the 2022 bill.

It’s easy to get down trading of crypto to be a legal grey area, but experts will actually tell you there no law in the country that bans cryptos, or says that trading such digital assets is illegal.

But, the RBI has consistently restricted cryptocurrency as it has raised concerns over financial stability. The central bank’s monetary policy would be less effective if crypto is allowed to move freely.  As far as the questions of legal regulations, dealing in crypto currency is not illegal under any provision of law in India.

Written by: Jeevanantham G.