Quote from: Melloiga on September 12, 2020, 06:36:43 PM

I think allowing it to be traded as stocks is not really a problem. One would be able to buy/sell it more openly and it will be more regulated and easier to pay tax on it, etc. I don't mind if they make it that. But I do hope that they keep it legal.

Everyone has a different perspective regarding Bitcoin. Many people wants it to be legalized as a currency, some like you are okay if it is traded as stocks and for some it is like an asset such as gold but the only thing that matters is how the government wants to regulate it.

I want Bitcoin should be used as a currency because that's what it is. A type of digital currency which can be used to make online transactions with no or low transaction fees but it's decentralized and volatile nature is a strong reason for our government to not legalize it as a currency. Maybe they think that it can affect the value of INR. Moreover in our country, it will be difficult for large part of population to understand the concept of Bitcoin, wallets and their working etc.

Talking about Bitcoin as a stock. I have never been a part of stock market but the only thing I know is that we buy some shares of a corporation or industry and sell accordingly.Bitcoin does not belong to any particular corporation or Industry so I don't think that it can be treated as shares.( correct me if I am wrong).

There are high chances of Bitcoin to be traded as other Commodities such as gold in our country. Even Subhash Chandra Garg,former finance secretary proposed that crypto should be regulated as a commodity and not as a currency. He feels that like other commodities, Bitcoin also has a varying demand and people are responsible for it's value. So it can be regulated as other commodities are being regulated in the country.

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What government needs is to learn more about it so they become less paranoid of it. And make it more easily accessible to general public and make regulations on how/how-not to use it. That's it. The more open they make it the less it will be used for illegal activities.

I totally agree with you. Lack of knowledge and improper understanding often leads to misconceptions. Government needs to learn about the working of cryptocurrencies,should decide in which form they want to legalize it and should come up with a certain set of rules and regulations accordingly. The basic measures may involve a mandatory KYC for every seller and buyer, proper record of every transaction should be there and proper taxation should be there.Moreover a restriction can be imposed on the amount that a person can trade.For example if a person is new to the exchange he should not be allowed to trade more than a certain amount and with time these restrictions should be removed.In this way only the trusted traders will get connected to the exchange. Instead of banning it completely, government should come up with some solutions to manage Bitcoin and other cryptocurrencies and let it grow in India.