Bitcoins have been in legal troubles for long. Many Bitcoins enthusiastics wonder whether use and dealing in Bitcoins legal or illegal in India? There is no straight forward answer to this question but the legality of Bitcoin in India is in Doubts.
Other jurisdictions are also observing the development of Bitcoins but some have taken positive affirmative steps in this regard. For instance, Bitcoins have been banned in Thailand and may be illegal in India as well unless laws are followed.
The present trend, however, seems to be more on the side of breach than compliance. It is in the best interest of India that Indian government and Reserve Bank of India (RBI) clear their stands in this regard.
A medical website has been offering receiving of Bitcoin payment for medical and surgical abortions in India. Now this may be a controversial and illegal act on the part of the website in question. Not only medico legal violations may be there on the part of the website but even the essential legal formalities regarding establishment of an e-commerce website in India have not been complied with.
The Medical Termination of Pregnancy (MTP) Act, 1971 of India clearly states the conditions under which a pregnancy can be ended or aborted, the persons who are qualified to conduct the abortion and the place of implementation.
Similarly, the Information Technology Act, 2000 clearly puts Internet intermediary under legal obligations to observe cyber law due diligence in India and Internet intermediary compliance requirements.
Regulatory authorities like RBI, Medical Council of India, etc must clearly specify the use and manner of use of digital currencies like Bitcoins for various purposes. Some regulatory guidance regarding Bitcoins can be obtained from the Indian virtual currency schemed issued by RBI. Nevertheless, Bitcoins, their functionality and legality of use in India is still a grey area.