Indian Bitcoin companies still trading cryptocurrencies after discovering a loophole
|- Unocoin and other cryptocurrencies exchanges are operating in the loopholes.
- Legal experts have expressed their doubts about the new methods of trading.
Indian Bitcoin companies have found a way to accept cryptocurrency payments even after the Finance Minister, Arun Jaitley said that cryptocurrencies are a not legal tender in the country. The companies are doing so without breaking law.
Mr. Jaitley did not say categorically that trading cryptocurrencies is illegal in the country. Therefore, Bitcoin companies like Unocoin and Zebpay along with many other exchange platforms are still trading the digital assets. For instance, a startup called Truebil uses a POS application from Unocoin to accept cryptocurrency payments at its physical location. The startup sells about 200 to 1000 cars every month.
The head of marketing at Truebil said in an explanation, “We are not accepting the [crypto] payments directly…Unocoin as our partner will receive the ‘crypto-assets’ from the consumer and then change it into a fiat currency before depositing it in our bank account. This brings it under the legal purview of existing laws.”
When the legality of the loophole was questioned, an expert from the industry said, “Many companies are taking a route similar to that opted by game companies which allow users to buy virtual coins and spend them in the game. This is quite legal and is in common use by Android game developers.”
The legal experts in India are exploring the loopholes, but many have already raised their doubts about this kind of method. In the meantime, the Indian government is working on a regulatory framework for cryptocurrencies in the county.
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