Crypto Is Now A Means Of Payment In India
The Indian government has appointed a commission which has recognized crypto as a means of payment in the country. The commission was established so it could advise the government on legal reforms.
In July 2016, the commission was asked by the Indian supreme court to examine the issue of legalizing betting in India.
A report on the legal framework for gambling and sports betting in India has recently been published by the Indian Law Commission. The report of 140 pages defines gambling as the act of “wagering or betting on games of chance but does not include betting or wagering on games of skill.” Wagering and betting are defined as “the staking of money or virtual currency [VC], whether or not it is equivalent to a recognized currency.”
The report states that “The issue of online gambling has further been worsened by the rise in popularity and ease of availability of VC, a form of electronic money.”
According to the Indian Government-Appointed Commission, gambling with cryptocurrencies “pushes even the online gambling market underground, and very often, out of the reach of the law enforcement authorities.”
The commission proposed that “stringent law(s) should be put in place to control foreign direct investment and at the same time, to prevent money laundering, while also implementing necessary tax reforms.” It then recommended that in its report that:
Similar restrictions should also be prescribed for the purpose of the amount one would be allowed to stake while using electronic money facilities of the likes of credit cards, debit cards, net-banking, VCs, etc.
It is also stated in the report that “gambling transactions should be made cashless, making use of electronic means of payment such as credit cards, debit cards, net-banking, virtual currencies (VC – also known as cryptocurrency), etc.”
The April 6 circular by the Indian central bank, in which the RBI had banned banks from providing services to crypto businesses, was cited in the report.
The Indian supreme court heard some petitions last week, relating to crypto regulation and the RBI ban. The crypto community had hoped that the court would hear all the petitions and maybe, grant a temporary stay on the RBI ban. Unfortunately, the court did no such thing and set the final hearing date to September 11. By so doing, the RBI and other regulators involved responding to the petition.
