After following the Indian Finance Minister’s speech on how the government would clamp down on the use of digital currencies, some startup businesses in India allege that they have found a loophole that would allow them to accept Bitcoin without breaking the law.
The Indian government is currently working on the regulatory framework for all the cryptocurrencies and during the recent Budget speech, the Finance Minister Arun Jaitley announced that the crytocurrencies are illegal in the country and vowed to vandalize their use. But, Jaitley didn’t specify that trading in the virtual currencies is illegal, hence the business is continuing as usual in various cryptocurrency exchanges such as the Zebpay and unocoin.
For instance, one of the operators of used cars in Mumbai, Truebil, admitted that it has devised mechanism to accept Bitcoin payments through the POS application as an alternative form of payment as a way to capitalize on the apparent loophole.
However, the firm is not accepting the crypto payments directly, it uses its partner, Unocoin that uses the POS application to receive the Bitcoin assets from the consumer and exchange it into the fiat currency before depositing in the bank account, which is absolutely legal.
Furthermore, there are other businesses within the country that are using other means to accept the crypto currencies without violating the law. Some firms have improvised ways similar to what is used in the game industry whereby the users are allowed to buy cryptos and spend them in the game such as the Android game developers. A claim that the legal experts have doubts about its validity.
As more and more individuals and companies increasingly accept the cryptocurrencies as an alternative payment method, the businesses around the world and Indian in particular should also strive to catch up with the growing demand in the virtual asset. Shuh Bansal, Co-founder, Marketing Head at Truebil stated that it’s essential for Indian tech-driven businesses to stay dynamic and embrace the use of cryptocurrencies.