FAQ’s on cryptocurrencies: PArt 1: 07.12.2021

Q1. Are Crypto currencies banned in India?

Ans.:No, cryptocurrencies are not banned in India at present. They have never ever been banned in India.

Q2. Define Bitcoin in short?

Ans.: Bitcoin is a type of cryptocurrency, which works on the blockchain technology.

Q3. Legal Framework to be introduced by Govt. to regulate Cryptocurrency Trading?

Ans. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

Q4. How does Cryptocurrencies work?

Ans.:Cryptocurrencies work on blockchain technology – a decentralised ledger of transactions. This isn’t maintained or stored in one place or with any central authority. Instead, it is spread across a network of computers, also known as peer-to-peer networks.

Q5. Is crypto trading regulated in India at present?

Ans. Presently, the government is working on a bill that will regulate crypto trading, and it will bring rules on how cryptocurrency exchanges. It is unregulated at present.

Q6. Is blockchain technology legal in India?

Yes, Blockchain technology is as legal as artificial intelligence (AI), machine learning (ML) or any other form of emerging technology.

Q7. Is there any requirement to amend PMLA Act?

Ans. Govt. is planning to amend its Prevention of Money Laundering Act (PMLA) to make provisions for cryptocurrency activity.

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