What is Blockchain?
A blockchain is a time-stamped series of unchangeable records of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data is secured and bound to each other using cryptographic principles. The blockchain network has no central authority and it is a shared and immutable ledger, the information in it is open for everyone and can be seen easily. The blockchain is a simple way of passing information from one point to another in a fully automated and safe manner. One party to a transaction initiates the process by creating a single block. This block is verified by millions of computers distributed around the world. The block after verification, the block is added to a chain, which is stored across the net, creating not just a unique record, but also with a unique history.
How many types of Blockchain?
There are two types of blockchain:
Public Blockchain- public blockchain is a type of blockchain, where anyone and from anywhere in the world can read and write data on it and it is open for all. One of the best example is Bitcoin.Private Blockchain - private blockchain is a type of blockchain, in which only trusted and known participants are allowed to read or write on it from anywhere. It could be used by a finite set of participants or a group of people who are authorized to read or write on block. One of the example is a group of financial entity or a group of specific companies. .
Sectors where Blockhain are used:
- Financial Services/Fintech – Blockchain are used in banking, stock exchange, Securities market, Derivative market.
- Telecom – Telephone regulatory authority of India used the blockchain technology notifying Telecom Commercial Communications Customer Preference Regulation, 2018 for controlling the flow of commercial communications.
- Real Estate
- Government services
- Intellectual Property
- Media and gaming
- Insurance Sector
- Energy- Solar power, tidal power.
Laws related to this sectors.
There are no specific laws currently in our country to regulate blockchain and cryptocurrency. The Indian government is considering whether cryptocurrencies can be regulated by the Reserve Bank of India (RBI). However, the central bank is worried that the anonymous nature of cryptocurrencies could pose a threat to India’s banking system. The Indian government drafted a bill on the banning of cryptocurrency “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019”. The bill was drafted by the interministerial committee. The reserve Bank of India banned the crypto trading in India through a circular issued in 2018 but later the Apex court strucked down the curb on crypto trade in India and allowed trading in virtual currency. The digital currencies may be notified or approved by the RBI, and cryptocurrency exchanges could be recognized and regulated by the Securities and Exchange Board of India.
We as a firm offer our client end to end transaction management from deal structuring to negotiating and from documentation to assistance in setting up their businesses in India. We provide services as under:
- Legal Assistance to help you design your tokens or token platform and support your token operations through the relevant legal way.
- We prepare commercial agreements, prospectuses and white papers in full compliance with the law of the country.
- To draft the terms and conditions of the 'know your customer' and anti-money laundering compliance between the customer and the company.
- In-depth legal advice on the taxation related to crypto.
- We advise and assist our client’s best options to structure the company or legal entity. Our team is up to marks to provide best available legal solutions in optimal time frame related to this sector and we keep ourselves up to date with any development in this sector locally as well as globally.