Crypto Currency

[TN Rajendran]

Dear Experts,

Is Crypto-Currency allowed in India. One person wants to sell his crypto-currency holdings and will be getting equivalent INR in Cheque/transfer to his bank account. Is this legally allowed? If allowed, how could that money be accounted?

[Spudarjunan S]

Dear Sir,

Earlier, RBI imposed ban on crypto currencies against which Internet and Mobile Association of India (IAMAI) had lodged a case in Supreme Court which still heard. Indian Government had submitted to Supreme court that the drafting of crypto currency regulations are in last stage and requested 4 weeks time further, in the month of March. So this month we may get to know whether the crypto-currency transactions through banking channels are legal or not. Till the time the transactions are banned by RBI from July 2018. Kindly follow up the case status to get the info.

AI Summary

Crypto-currency regulation uncertain as banking-channel transactions remain constrained pending litigation and future rules. Legality of selling crypto-currency for banked funds is unsettled: a central bank restriction has constrained banking-channel transactions and that restriction is subject to ongoing litigation; the government has represented that crypto-currency regulations are being drafted, so the legal position remains contingent on court outcome and future rules, and parties should monitor developments before completing or accounting for such transfers.