The Indian government seeks help online: How to properly regulate Bitcoin? Waiting online, very urgent!

The Indian government is currently seeking public comments and suggestions on the regulation and legislation of virtual currencies such as Bitcoin.

In early March this year, the Indian Ministry of Finance established an interdisciplinary committee, whose members include representatives from several major authoritative institutions such as the central bank (which has warned the public about the use of Bitcoin) to study the legislative framework for virtual currencies.

Specifically, the main objectives of this committee are to:

1. Consider the current status of virtual currencies in the world and in India

2. Study the current regulatory and legal framework for virtual currencies in the world

3. Providing solutions for consumer protection and money laundering related to virtual currencies

4. Research other issues related to virtual currencies

Now, the Indian Ministry of Finance has solicited users' opinions on the issue of virtual currency on its official website, stating that "the circulation of virtual currency, also known as digital or cryptocurrencies, has attracted a lot of attention."

The finance ministry also referred to two announcements issued by the Reserve Bank of India, one in 2013 and the other in February 2017.

Specifically, the government hopes to find answers to the following questions:

a) Should virtual currencies (VCs) be banned, regulated, or continue to be observed?

b) If virtual currencies should be regulated:

i). What measures can effectively protect consumers?
ii). What measures can ensure the reasonable development of virtual currencies?
iii). Which institutions should regulate or manage virtual currencies?

c) If virtual currencies should not be regulated:

i). How to ensure effective self-management mechanisms?
ii). What measures should be taken to protect consumer rights?

According to local media reports in India, the government has begun preparing for the regulation of virtual currencies. In mid-April, some media pointed out that the government plans to legalize Bitcoin and impose taxes on it. At this moment, countries such as Japan and the Philippines have officially recognized Bitcoin as a legal payment method, and all signs indicate that the Indian government seems to be interested in legalizing virtual currencies.

The Indian government is unlikely to ban the use of virtual currencies as this would conflict with its own plans to develop digital payments and finance.

Many people have called on the government to legalize virtual currency.

At present, netizens' comments tend to favor the regulation of virtual currencies:

India should regulate Bitcoin. Proper regulation can help the Indian economy and its citizens benefit from this emerging technology. Other countries are legalizing and accepting Bitcoin, and we should do more for the country's digital future.

Yes…regulating cryptocurrencies would be a positive step to stimulate the Indian economy.

Japan and South Korea have already legalized Bitcoin, and India should do the same.

The consultation period will end before May 31, during which time the public can freely express their opinions on virtual currency regulation.