The world of virtual currency is vast and ever-growing, and Bitcoin is amongst the supergiant’s of the industry. There has been GREED over PANIC because bitcoin has surge by 950% in a year unimaginable gains to investors. Unocoin, one of India’s oldest exchanges, added 20,000 users in January and February, despite worries of a ban.
Reserve Bank of India’s liberalised remittance scheme (LRS) which permits a resident to take a position as much as $250,000 a year overseas in shares, bonds and properties amongst different issues has led to investors purchase bitcoin in overseas account. And they are also buying by using Debit & Credit cards. These digital currencies are not shown in their holdings and are kept away from Taxman. But when they share this information the legality of this transaction may be questioned. These can be treated as intellectual property or software as said by RBI. And the import of intangible asset is permitted. But the disclosure of these currencies are creating dilemma over investors. Because any foreign account or any asset hold by an Indian Residents outside India need to disclose. But an investor should be aware when government can penalize or ban private cryptocurrencies. Certain time period was given to investor to liquidate theirs cryptocurrencies in the past verdict of court.
But now apex court has observed that cryptocurrencies are unregulated but no illegal this has made the traders relived. And the Central Government is planning to introduce its own cryptocurrency in India CBDC (Central Bank Digital Currencies).
The Finance Diaries 