There has been an upsurge in the use of digital money in recent times. The internet had helped in
creating a new currency which has eradicated the problem of double spending. Bitcoin, the
market’s leading cryptocurrency, is the world’s first completely decentralized digital currency. It
is an open peer to peer electronic cash system which is based on a cryptographic protocol.
However, different jurisdictions have different views about Bitcoin. Central Banks and
Governments of various countries have passed various rules and regulations concerning the
same. In this paper, the authors attempt to analyse the legal aspects of Bitcoin. This paper is
divided into five parts. Part I is an introduction to cryptocurrency and bitcoin. Part II delves
deeper into what exactly is bitcoin and its working. Part III gives an overview of the legal
position of Bitcoin in various countries. Part IV talks about the current position of Bitcoin in
India and the rules and regulations applicable. Finally, Part V sheds light on the reasons for
legalization of bitcoin and how it will be helpful.
Bitcoin, Cryptocurrency, Legal, Blockchain, Taxation.