My inputs in The Week on Vitalik Buterin’s $1 billion ‘Shiba Inu’ crypto donation & legal hurdles in India. #cryptocurrency Suman Bhowmick Vikram Venkateswaran Debajani Mohanty Sudin Baraokar
Sharat Chandra
One option is to have the donation or aid be converted into an equipment purchase directly from the donor to avoid any non-compliance issues.
“This has to align with the local Indian regulations and regulatory requirements as any inward remittance comes under Foreign Exchange Control Act—unless it’s a rupee inward remittance from Nepal Or Bahrain. [Only if] the remittance comes [as] a US dollar or fiat currency transaction can the transaction be held as legitimate,” points out Sudin Baraokar, Global IT and Innovation Advisor.
Any donation under charity or Grant rules come under regulatory guidelines and must follow the same path as defined by RBI who issue directives to commercial banks. It is still unclear whether the central bank has allowed any crypto currency remittance as of now. So the underlying crypto currency will have to be converted into Fiat Currency and then transferred to the beneficiary bank account,” he adds.
Read Article : https://www.theweek.in/news/biz-tech/2021/05/13/vitalik-buterins-1-billion-shiba-inu-crypto-donation-faces-legal-hurdles-in-india.html