Gujarat: Most bitcoin tradings illegal, says expert

Sharing his insight into the trade, local cyber expert Viral Parmar revealed that there is no concept of legal or illegal trading but it is the process followed while trading that makes it so. With regards to virtual trading, trading in bitcoin is considered illegal, says Parmar.

Gujarat, he says, has over 50 new cryptocurrencies, owners of most of which have no expertise in the area. "These currencies are used in the Initial Coin Offering and funds are raised for a new cryptocurrency venture, similar to IPO, but only on the basis of new cryptos and most of such ventures of fraud," said Parmar. These factors contribute in making bitcoin trading an illegal trade. As per Parmar, there are two types of trading and the legitimacy of the same depends upon the wallet used by the investor or trader.

There are several wallets that for user's KYC and other details before allowing the user to trade, buy or invest in cryptocurrencies. Usually, in such wallets, the entire transaction details of the user can be seen and the person to whom the payment is being made, can be seen.

But on the other side, there even wallets that allow the user to trade, buy or invest on cryptocurrencies directly by adding the user id and password of the wallet. In such wallets, no records of the user are found nor of the person to whom the payment is being made. In Gujarat, most users use these wallets so as to avoid revealing their identity.