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Are Bitcoins Legal?

Are Bitcoins Legal?

Have you heard about blockchain and its features related to cryptocurrencies like bitcoin? If no, this is very strange.

The legal status of Bitcoins varies from region to region and country to country. In a country like India, there are multiple statements regarding the legality of the bitcoins. From mid-2013, reserve bank of India had issued a notification regarding the legality of bitcoins and it stated that bitcoins are legal in India with some operations and regulatory restrictions. Later in August the same year, another statement was revealed stating that the usage of Bitcoins is under observation. Now that all the operation related to the bitcoins, virtual currencies are going as it was before, there is no need to worry about news and notifications regarding the illegal bulletin. Also, the foreign currency trading is working as usual so is the Bitcoin trading.

What blockchain is about?

When we talk about blockchain, it is kind of ledger that record all these cryptocurrency transactions. There were many statements released in India regarding the virtual currency but nothing was proved to be dropped or nothing is being quite so far. The issue had become more peculiar when a Member of Parliament had raised a concern stating that bitcoins is a Ponzi scheme and nothing had a detailed transaction history. Down the line with the statement of the MP, many media persons declared that the bitcoins transaction is illegal in India but no statement from the Supreme Court or a higher authority was released as such.

All the Bitcoins and blockchain exchange centers had to bear the pain of the news and reassure their customers on transactions elaborating the issue. But to explain that bitcoins are not a Ponzi scheme; many illustrations had to be drawn. Many of the cottage firms and service sectors of India used the bitcoins payment mode without the concern of their customers where the cottage firms and service companies were not secured ones. This made the people and media executives think the issue in a different way and made them state that bitcoins are a Ponzi scheme. This was a really unfortunate situation where the blame had been diverted over to Bitcoins exchange centers and bitcoins operating organization. Bitcoins are just a cryptocurrency that helps the people to make transaction even without using their real money or currency. Now that the Ponzi firms have used bitcoins as payment mode, bitcoins cannot be declared as Ponzi. This must be cleared to the M.P who had stated that Bitcoins are Ponzi.

Blockchain ledger record works to allow people to start maintaining and keeping a track of various Bitcoin records and get the power of recent financial services of blockchain on their cell mobile phones for the ones who cannot easily open their own financial records or bank accounts. If that happens, they can help destroy e-commerce. It can also help India build an innovative and secure payment network by missing the ineffective and vulnerable plastic cards.

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Patrick Goh Mr. Patrick Goh B.S is a research engineer with more than 10 years in industry of IT, Engineering and Financial market experience. In 2013, he joined financial institute’s research team as R&D software engineer mainly researching on technical analysis, inter-market correlation and fundamental factor in leveraged trading instrument using machine learning technique and programming algorithmic trading strategy by quantifying trader sentiment behind the price movement.


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