Finance Minister T.V. Somanathan told Bloomberg that buying and selling virtual currencies is not illegal in India. News agency ANI quoted Somanathan as saying, “Bitcoin, Ethereum and NFTs will never become legal tender. Cryptoassets are assets whose value is determined ...Read more
Explore the legality of cryptocurrency in India, from initial restrictions to regulatory developments, and the Supreme Court's pivotal decision in 2020 that revived crypto trading. Is Cryptocurrency Legal in India? Yes, cryptocurrency is legal to trade and invest in India, but it's not recognized asRead more
Explore the legality of cryptocurrency in India, from initial restrictions to regulatory developments, and the Supreme Court’s pivotal decision in 2020 that revived crypto trading.
Is Cryptocurrency Legal in India?
Yes, cryptocurrency is legal to trade and invest in India, but it’s not recognized as legal tender. The journey of crypto legality in India has been tumultuous:
- 2018 Ban: The Reserve Bank of India (RBI) banned regulated entities from dealing in cryptocurrencies, citing risks related to criminal use and lack of government recognition.
- 2020 Supreme Court Ruling: This landmark decision overturned the RBI ban, allowing cryptocurrency trading to resume freely.
- Current Status: While trading and investing in cryptocurrencies are permitted, regulatory clarity is still evolving. Tax guidelines were introduced in 2022, taxing crypto gains at 30%, but private cryptocurrencies like Bitcoin remain unrecognized as official currency.
The government is working on introducing a Central Bank Digital Currency (CBDC) and considering regulations or restrictions for private cryptocurrencies. A complete ban seems unlikely due to the market’s growth and international guidelines from bodies like the IMF and FATF, which advocate regulation over prohibition.
India is navigating the fine line between innovation and control, signaling a future where crypto regulation, not elimination, will dominate the narrative.
Who regulates cryptocurrency in India? Explore the Reserve Bank of India's (RBI) role, legal developments, and India's evolving stance on crypto regulations. India’s cryptocurrency regulations are a work in progress. The Reserve Bank of India (RBI) plays a key role, having initially banned banks froRead more
Who regulates cryptocurrency in India? Explore the Reserve Bank of India’s (RBI) role, legal developments, and India’s evolving stance on crypto regulations.
India’s cryptocurrency regulations are a work in progress. The Reserve Bank of India (RBI) plays a key role, having initially banned banks from supporting crypto transactions in 2018—a decision overturned by the Supreme Court in 2020. Cryptocurrencies are not illegal, but they are not recognized as legal tender either.
Currently, there’s no dedicated regulatory framework for cryptocurrencies, though taxation on virtual digital assets (VDAs) was introduced in 2022. The government has proposed a Central Bank Digital Currency (CBDC) and is working on a bill to clarify crypto regulations. Meanwhile, RBI continues to caution against crypto’s risks, calling for greater oversight to ensure financial stability.
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