Pratishthit Mittal & Bhargav Bhamidipati, ILS Law College, Pune
With rapid development of technologies in our day to day life, many activities have been merged online and created a new business phenomenon. In this modern world, with dynamic changes in currencies, cryptocurrency and blockchain technology is finding a new place. Cryptocurrencies represents valuable and intangible objects which are used to electronically in different applications and networks such as online social networks, online social games, virtual currency and peer-to-peer networks. While this technology has been welcomed by some states, it has found immense criticism in developing nations.
While some nations have incorporated cryptocurrencies as products or legal tender in their pre-existing legal framework, countries like India, People’s Republic of China, Singapore, Republic of Korea have denied them the status of legal tender. Though this technology provides alternative to presently operating weak security systems, these countries have been skeptical about the use of cryptocurrencies. This skepticism arises due to the possible uses of cryptocurrencies in illegal markets and money laundering incidences.
This research paper aims to understand this dynamic technology, its application, its legal position in different parts of the world especially India, the present hindrances in acquiring the legal status, and model regulation for the legality of cryptocurrencies in India. This paper aims to take a problem-solution approach to the issue of virtual currencies.