Indian Law Commission Recognizes Cryptocurrency as an "Electronic Payment" - Report

The cryptocurrency ecosystem in India may have just found a lifeline, albeit an unlikely one.

According to a legal report released in July 2018, the country’s lawmakers are considering legalizing the multi-million dollar sports betting industry – naming cryptocurrencies as a legally acceptable payment method akin to credit and debit cards.

• India Explores Cryptocurrencies in Sports Betting :-

Titled ''Legal Framework: Gambling and Sports Betting including Cricket in India,'' the report explores the usage of digital payment mechanisms, including cryptocurrencies, as the country prepares to legalize the sports betting sector.

Interesting, the law commision considered cryptocurrencies as a method of digital payment akin to credit cards, debit cards, and net banking, stating:

The report stems after police investigations into million-dollar betting allegations during the popular Indian Premier League (IPL) cricket matches revealed fan-favorite celebrities and politicians used “black money” for placing their bets, superseding the government’s widespread, yet ineffective, crackdown on betting circles.

After observing this fallacy, judges of the Indian Supreme Court proposed the legalization of the sports betting market, while appointing the Lodha Committee to explore this suggestion further while collaborating with the Board of Control for Cricket India (BCCI).

• Citizens Await Cryptocurrency Regulations :-

The committee stated there is a subtle boundary between match-fixing and recreational betting, and the former could undoubtedly remain a legal offense while the latter could serve as a means of generating tax, after legal regulation.

The report stems after police investigations into million-dollar betting allegations during the popular Indian Premier League (IPL) cricket matches revealed fan-favorite celebrities and politicians used “black money” for placing their bets, superseding the government’s widespread, yet ineffective, crackdown on betting circles.

After observing this fallacy, judges of the Indian Supreme Court proposed the legalization of the sports betting market, while appointing the Lodha Committee to explore this suggestion further while collaborating with the Board of Control for Cricket India (BCCI).

The committee stated there is a subtle boundary between match-fixing and recreational betting, and the former could undoubtedly remain a legal offense while the latter could serve as a means of generating tax, after legal regulation.

Following the Indian central bank’s crackdown on cryptocurrencies, crypto-enthusiasts are awaiting developments and regulations for the burgeoning sector. At the time of writing, money cannot be withdrawn from cryptocurrency exchanges, although peer-to-peer exchanges like WazirX and Koinex Loop make cashing out possible.

The much-awaited July regulation on the legality of cryptocurrencies was shifted for September 11, 2018, hearing in the Indian Supreme court, as reported by CCN.

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