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Cryptocurrency is always be trending all over the globe. Nowadays everyone is familiar to its potential especially with the high value of the bitcoin, which is increasing every other day passes. But there is always a question Is Cryptocurrency Legal in India? due to its complicated process behind cryptocurrency. There are a number of myths spreading about cryptocurrency and those who are not much known about it believe them and start thinking that it is not a good or safe source.
This article is totally targeted to clear your misconception about cryptocurrency. In this, we gonna talk about Is Cryptocurrency Legal in India. At the end of this post, you get a clear vision on Is Cryptocurrency Legal in India and all the governmental decision on it.
Is Cryptocurrency Legal in India
Back in 2018, the RBI banned the regulated entities from providing services to any person or companies dealing in any cryptocurrency but the circular was overturned by the Supreme Court of India in March 2020. And allows all the deals done in the form of cryptocurrency.
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India’s former Finance minister Arun Jaitley, in his annual budget speech on 1 February 2018, stated that the government will do all the stuff to discontinue the use of cryptocurrency and other virtual currencies in India for criminal and other illegal uses. He reiterated that India does not recognise them as the legal process and will instead encourage blockchain technology in payment systems.
“The government does not recognise any kind of cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing activities or as part of the payments system in India,” Jaitley said.
Back in 2018 Indian central bank, the Reserve Bank of India (RBI) announced a complete ban on the sale or purchase of any kind of cryptocurrency for entities regulated by RBI in India.
In 2019, a petition has been filed by the Internet and Mobile Association of India to the Supreme Court of India challenging the legality of cryptocurrencies and seeking a direction or order restraining their transaction.
Then finally in March 2020, the Supreme Court of India passed the act, revoking the RBI ban on all kind of cryptocurrency trade in India. And made it totally legal.
For now, the answer to the question Is Cryptocurrency Legal in India? is YES. It is totally legal in India now. You can legally regulate all kind of cryptocurrency without any restrictions.
Future – Is cryptocurrency legal in India
It looks like the government is all set to bring in a new law to ban the trading in all kind of cryptocurrency. According to sources Moneycontrol, a move that will come as a huge blow to an industry that has been booming during this COVID-19 lockdown.
The Supreme Court of India had in March 2020 set aside a Reserve Bank of India’s circular that ban the banks and financial organisation from providing services related to any kind of cryptocurrencies. Indian and other countrie’s cryptocurrency majors have been waiting for clarity from the Indian government or the RBI on digital tenders following this order.
“There was a view set in the Indian government that banning cryptocurrency through law would be more binding on it. It will clearly define the illegality of the trade-in crypto.
Back in 2017, a team of governmental officials studied the ecosystem and the processes behind the cryptocurrency briefly. And prepared a report on the ban of all kind of digital and cryptocurrencies in India. Suggested a fine of 25 crores and imprisonment up to 10 years who found guilty in it.
The ban cryptocurrency trading could affect more than 1.5 million tradings in the digital platform and a number of rising companies sets up to the platform.
This will also affect many international companies, those added millions of users by starting in India. Most of their dealing done through the cryptocurrency. And most of their use is less than 30 years old.