Lok Sabha Question No. 292 (STARRED), answered on 2017-08-04
Subject: Crypto Currency/Bitcoin
Ministry: FINANCE
Asked by: VINAYAK BHAURAO RAUT, SHRIKANT EKNATH SHINDE

## POSITION NO.12

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. 292

TO BE ANSWERED ON 4 TH  AUGUST, 2017/ 13 TH  SHRAVANA, 1939 (SAKA)

## CRYPTO CURRENCY/BITCOIN

*292. SHRI VINAYAK BHAURAO RAUT:

DR. SHRIKANT EKNATH SHINDE:

## QUESTION

Will the Minister of FINANCE be pleased to state:

- (a) whether  crypto currency/bitcoin is being used  in various business  in  the  country  and  if  so,  the  details  and  the  salient features thereof;
- (b) whether  the  use  of  such  currency  has  been  permitted  by  the Government,  if  so,  the  details  thereof  and  if  not,  the  reasons therefor;
- (c) whether there has been a nation-wide advertisement in various leading  newspapers  about  the  crypto  currency  and  if  so,  the details thereof;
- (d) whether the Government has received any complaint or taken suo moto action in this regard;
- (e) if so, the details thereof and the corrective action taken against those violating laws of the land in this regard?

## ANSWER

## MINISTER OF FINANCE

(SHRI ARUN JAITLEY)

(a) to (e): A statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION  NO.292  RAISED  BY  SHRI  VINAYAK  BHAURAO  RAUT,  DR. SHRIKANT EKNATH SHINDE, HON'BLE MEMBERS OF PARLIAMENT TO BE ANSWERED ON 4.8.2017 CRYPTO CURRENCY/BITCOIN.

There is evidence that crypto currency/bitcoins are being used in the country.  The bitcoin market in India has seen notable growth over the last few years. There are mainly two categories of players operating in India, one with presence in public domain and other who operate in an unorganized manner through social media sites and mobile apps. The players operating in public domain are either exchanges or traders. At present, there are no regulations governing VCs including Bitcoin (BTC)  in  India.  Further,  Reserve  Bank  of  India,  vide,  Press  Release  dated February  01,  2017  has  advised  that  it  has  not  given  any  license  / authorization to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency. The Reserve Bank of India has cautioned from time to time, vide their Press Releases dated December 24, 2013 and February 1, 2017, the users, holders  and  traders  of  virtual  currencies  about  the  potential  financial, operational, legal, customer protection and security related risks. These can be accessed  at https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/IEPR1261VC1213.PDF & https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR205413F23C955D8C45C4A1F56349D1 B8C457.PDF Taking cognizance of concerns raised at various fora from time to time on  increasing  use  of  virtual  currencies  and  the  regulatory  challenges, Department of Economic Affairs constituted a committee with representatives from  Department  of  Economic  Affairs,  Department  of  Financial  Services, Department  of  Revenue  (CBDT),  Ministry  of  Home  Affairs,  Ministry  of Electronics and Information Technology, Reserve Bank of India, NITI Aayog and State Bank of India.  The objectives of committee, inter-alia, were to take stock of the present status of Virtual currencies both in India and globally; examine the existing global regulatory and legal structures governing Virtual Currencies;  suggest  the  frame  work  for  regulation  of  Virtual  Currencies  if considered including issues relating to consumer protection, taxation, money laundering  among  others;  any  other  matter  related  to  Virtual  Currencies which may be relevant. DEA in May, 2017 had also invited comments from members of public on Mygov.in platform.

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