While the ban on cryptocurrency set by an Indian Central Bank is still in power and the entire local crypto community is waiting for September 11 to hear the verdict of the country’s Supreme Court, Indians might receive another chance for the future positive result. Another long-term project of lawmakers on the legal status of sports betting in India, mentions cryptocurrencies as a legal method of payment for gamblers.
The reference to virtual money is well hidden in a 145-page document prepared by India’s Law Commission— “LEGAL FRAMEWORK: GAMBLING AND SPORTS BETTING INCLUDING IN CRICKET IN INDIA”. In the company with other legal types of payment set for online transactions, cryptocurrencies are allowed for a use (if the law comes to power) for sports gambling.
“Gambling transactions should be made cashless, making use of electronic means of payment such as credit cards, debit cards, net-banking, virtual currencies (VC, or cryptocurrency), etc.,” states the document.
WHY IS IT IMPORTANT?
1. While very popular among the local population, both the sports betting and cryptocurrencies are currently banned in India, which leads to a greater space for illegal activities, therefore, harming the country’s economy.
2. With the rise of cryptocurrency usage, online gambling has also become easier due to difficulties of tracing transactions. Thus it is important to keep track of funds as a way of regulating.
3. It didn’t happen before that a government-appointed body allows cryptocurrencies to be used as a payment method, having a certain value.
At the beginning of April, the Reserve Bank of India has banned banks and financial institutions from providing any service related to cryptocurrencies.