Everything You Need To know Cryptocurrency In India

Disclosure! My posts may contain affiliate links, which means that, if you choose to make a purchase, I may earn a small commission at no extra cost to you. I greatly appreciate your support! Learn more

Cryptocurrency In India

    

It is pertinent to note that only government-approved cryptocurrencies will be able to trade in India after the law goes into effect. The bill is likely to address the concerns and ambiguities regarding the impact of taxes on crypto assets in India, which currently remain due to the lack of relevant regulations.

    

It is also speculated that the government may also impose a Securities Transaction Tax (STT) on cryptocurrency trading. Some analysts believe that while the government is unlikely to agree to the use of cryptocurrencies as private currencies, the authorities may agree to their use as financial assets. India's finance ministry officials are also reported to be considering a legal framework that could deal with cryptocurrencies closer to commodities than currencies.

    

In March, India was considering legislation to ban cryptocurrencies, penalizing anyone who trades in the country or even owns such digital assets, Reuters reported, citing a senior government official. India is gearing up to quell the boom in cryptocurrency trading with new legislation likely to be introduced to parliament this month. India is set to ban all but a few private cryptocurrencies after the government announced a new financial regulation law on Tuesday. Cryptocurrency law and formal digital currency regulation will create a favorable foundation for an official digital currency to be issued by the Reserve Bank of India and will ban all private cryptocurrencies such as Bitcoin and Ethereum.

Also Read: Is Cryptocurrency the Future Of Money

  

The Indian government is preparing to ban private cryptocurrencies and allow the country’s central bank to launch official digital currencies. The proposed law was introduced after China's crackdown on cryptocurrency, and China's financial regulator and central bank have declared all digital currency transactions illegal. India’s proposal was highlighted in a parliamentary announcement listing upcoming legislation, which included paragraphs on cryptocurrency and the regulation of the official digital currency law of 2021. Through the bill, India is trying to ban most private cryptocurrencies and to create an official digital currency issued by the Reserve Bank of India.

    

However, it will allow "some exceptions to be made to promote the technology behind cryptocurrency and its use," the newsletter said. India is expected to identify cryptocurrencies and split their currently unregulated digital currencies based on their use. The Securities and Exchange Board of India (SEBI) will regulate crypto assets, the draft executive summary also says. Even though it is recognized as an asset and not a currency, there is a strong possibility that only platforms registered with the Securities and Exchange Board of India (Sebi) can trade cryptocurrencies.

    

Since all Indian cryptocurrency exchanges have moved their offices out of the country after the Reserve Bank of India (RBI) banned banks from cryptocurrency transactions in 2018, it is difficult to assess their earnings. India is considered to be one of the largest cryptocurrency markets in the world and is home to around 15 million cryptocurrency investors according to Nasscom. Attracted by the flurry of advertising and the rise in cryptocurrency prices, the number of crypto-asset investors in India has increased. According to industry data, 15 to 20 million people in India own cryptocurrencies, with a total investment of around $ 6 billion (€ 5.31 billion).

    

India has become one of the largest Asian cryptocurrency markets and one of the fastest growing markets in the world. India is currently ranked second in cryptocurrency adoption, behind only Vietnam, according to the Global Cryptocurrency Adoption Index for 2021. Cryptocurrencies, especially Bitcoin and Ethereum, are gaining popularity in India, according to a report from Crebaco and Khaitan. & Co.

    

As most cryptocurrencies reach new heights in value, valuing Bitcoin at $ 877 billion and Ethereum at $ 462 billion, respectively, governments around the world are keeping an eye on the cryptocurrency universe. The price of cryptocurrencies changes very often and remains very volatile. Bitcoin is the oldest and most famous crypto token you can buy, and its value has changed by -6.22% in the last 24 hours.

    

ETF

The ETF was due to launch on November 22 before Invesco delayed it pending the adoption of the cryptocurrency law. Meanwhile, India's first cryptocurrency unicorn, CoinDCX, is planning an initial public offering (IPO) after receiving regulatory approval.

    

But when speculation began over the cryptocurrency bill last month, prices of some of the most popular digital currencies like Bitcoin, Ethereum and Tether plummeted to 25% in an instant. In addition to trading itself, the 2020 cryptocurrency boom has spawned a number of new banking products such as cryptocurrency loans and fixed deposit (FD) schemes.

    

A lot of speculation continues to emerge as to whether the law will ban cryptocurrencies or simply try to regulate them. Even after the government announced a law to ban cryptocurrencies last month, Shah doesn't believe a complete ban will ever happen.

    

Nirmala Sitharaman, India's finance minister, told parliament that the government plans to pass a cryptocurrency law soon. When asked by MP Sanjay Raut in the upper house of parliament, the government denied any plans to introduce Indian cryptocurrency. The government also denies that it is aware of companies that have used cryptocurrency for international transactions in the past year.

    

The government's plans to crack down on cryptocurrency trading have caused a frenzy in the market, and several investors have suffered significant losses. Although Bitcoin and other currencies fell 20% last week after the bill was announced, prices stabilized within 24 hours.

    

However, in the case of cryptocurrency, no one knows who is buying from whom, Dr. Suvrokamal Datta, an economics and foreign policy expert based in New Delhi, India, told Media India Group. He goes on to say that the secrecy of cryptocurrencies helps illegal organizations to operate easily, and the execution and legalization of these transactions can pose a serious threat to the country's security. He also says that due to this concern for security and opportunity, there are two factions in the government: one is demanding a complete ban, and the other is the introduction of cryptocurrency regulations.

    

According to a publication on Friday, India's lower house of parliament, Lok Sabha, will likely not consider a bill proposing a ban on "all private cryptocurrencies" until the end of Thursday's winter session. The lawyer behind the lifting of the cryptocurrency ban in India in 2018, Anirud Rastogi, believes the overly restrictive stance could lead to a new battle in the Supreme Court. Rastogi represented Indian cryptocurrency exchanges for the Internet and Mobile Communications Association of India (IAMAI), of which WazirX, CoinDCX and others are members, in the Supreme Court's appeal against the 2018 cryptocurrency ban issued by the Reserve Bank of India (RBI). Other industries such as OTT services and e-commerce have been self-regulating for several years now, and the same permission should be granted to the cryptocurrency sector in India. If a government imposes stricter rules, it must be accompanied by a termination clause. And this is done by using cryptocurrencies. If there is a general ban on cryptocurrencies and their use as payments, Indian developers will face challenges in developing solutions based on blockchain technology.

Platform For Cryptocurrency 

Use my referral link to sign up on CoinDCX, and earn $25 when you trade worth 5 BTC or more - including if you use 5x leverage on DCXmargin to place a 5 BTC order with just 1 BTC.

I am enjoying investing in crypto assets using B21 Invest. You can start doing the same. Build your portfolio today! use my Code (44BM3V) during sign up to earn referral tokens. Download Now

Thank you for reading this article till the end, I hope this article was helpful for you to understand CRYPTOCURRENCY in INDIA easily, please do share on social media. Leave a comment below your about experience with us.