On Monday, the Bombay high court ordered the Centre to provide an update on the proposed cryptocurrency in India law that is slated to be introduced during Parliament’s current winter session.
The order came while the court was considering public interest litigation requesting that the government establish adequate legislation to combat the growing threat of cryptocurrency and trading platform malpractices. Afflicted persons do not have a redressal procedure for their concerns, according to the plea, because there is no adequate legislation or statutory authority.
Investors experience concerns, according to petitioner Aditya Kadam, because their rights are being infringed and their assets are at risk because the bitcoin market in India is unregulated.
Bill to prohibit all private cryptocurrencies in India on the unveil
With the surge in interest in digital currency and all of its consequences for both new and existing enterprises, there is a rising demand for legal clarification around these new technologies and currencies. Individual investors can make a lot of money investing in this new arena while governments, regulatory agencies, central banks, and other financial organisations seek to comprehend the nature and meaning of digital currencies. Investors, on the other hand, take legal risks when they acquire and sell cryptocurrencies.
A bill seeking “to prohibit all private cryptocurrencies in India” is among 26 pieces of legislation planned to be brought to Parliament in the session.
India currently has no regulation for cryptocurrencies – a set of decentralised digital currencies such as Bitcoin and Ethereum that are not regulated by any sovereign banking regulator.
As cryptocurrency investment has grown in popularity, it has spawned a slew of legal issues and risks that wise investors should be aware of.
In some countries, cryptocurrency is treated as money, but in the United States, it is treated as property and hence taxed as such. Crypto investors will have to pay capital gains taxes regardless of where they purchased the cryptocurrency.
Because Bitcoin and other cryptocurrencies are decentralised, they are not backed by a centralised body, which can be both a benefit and a danger for investors.