Cryptocurrency Regulations In India
Cryptocurrencies: Not legal tender
Cryptocurrency exchanges: Effectively illegal – regulations being considered
Knowledgebase
Cryptocurrencies: Not legal tender
Cryptocurrency exchanges: Effectively illegal – regulations being considered
Cryptocurrencies are not legal tender in India, and while exchanges are legal, the government has made it very difficult for them to operate. Although there is currently a lack of clarity over the tax status of cryptocurrencies, the chairman of the Central Board of Direct Taxation has said that anyone making profits from Bitcoin will have to pay taxes on them. Other Income Tax Department sources have suggested that cryptocurrency profits should be taxed as capital gains.
Cryptocurrency exchange regulations in India have grown increasingly harsh. While technically legal, in April 2018 the Reserve Bank of India (RBI) banned banks and any regulated financial institutions from “dealing with or settling virtual currencies”. The sweeping regulation prohibited trade of cryptocurrencies on domestic exchanges – and gave existing exchanges until 6 July 2018 to wind down.
India’s government seems to be looking at the possibility of less prohibitive cryptocurrency regulations. In 2017, the Special Secretary of Economic Affairs formed a committee to suggest ways of dealing with the potential AML/CFT and consumer protection issues related to cryptocurrencies. In 2018, reports suggested that a government committee was drafting new legislation which introduced greater cryptocurrency protections for “the common man”.
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“in April 2018 the Reserve Bank of India (RBI) banned banks and any egulated financial institutions from “dealing with or settling virtual currencies”. But now the ban has been lifted by Indian Supreme court in March 5,2020.
Thank you for the update, Stacey! We will update the content accordingly.
This is Useful information. I will tell about it to my friends and anybody that could be interested in this. Awesome information. Thank you for sharing.
Still it is not clear to me whethrr i csn trade in cryptocurrency in india or not
Good share!
Hi there! Thanks for the post.
nice post!
Hi there! Thanks for the update
Hi There! Thanks for the updated reply!
Many countries taking bitcoin trading seriously and giving permission for the same. India should look this situation positively, because world now started accepting this… only the matter is that we have to choose any reliable trading platform for the same.