With more and more people investing in popular Bitcoin And relatively little know Shiba Inu, probably thanks to Elon Musk, cryptocurrency The craze has really gripped India. According to the popular crypto-exchange platform WazirX, more than 20 million people in India own cryptocurrencies. According to a report by Analytics Insight, Indians have invested around $6.6 billion in cryptocurrencies as of May 2021. It saw a jump of over 600 percent from $923 million in April 2020. Currently, over 350 startups operate in the blockchain and cryptocurrency space.
While new age investors, especially millennials, are taking to crypto with such enthusiasm, the million dollar question right now is – is cryptocurrency legal in India? Currently, there is no legislature covering cryptocurrencies in India. However, this does not make cryptocurrencies illegal in the country. This simply indicates that there is no regulatory framework in place to protect cryptocurrency owners in the country. To address this lack of regulatory framework in the crypto world, the central government is ready on the table. cryptocurrency and regulation of the Official Digital Currency Bill in Parliament during the Winter Session.
What do we know so far about the cryptocurrency bill?
The new bill aims to ban private cryptocurrencies while providing a framework for the creation of an official digital currency by the Reserve Bank of India. “The bill also seeks to ban all private cryptocurrencies in India. However, it allows certain exceptions to promote the cryptocurrency and the technology underlying its use,” the bulletin said. It also sought to “create a facilitating framework for the creation of an official digital currency issued by the Reserve Bank of India.” Of.”
Cryptocurrency as an asset?
Crypto experts are hopeful that the government will not opt for a complete ban on cryptocurrencies in India. The Center may recognize this as an asset such as immovable property, stock or gold. Then, the government would levy a capital gains tax on any gains made after selling the cryptocurrencies.
“A well-evaluated and thought through regulation will pave the way for greater adoption of technology and help millions of Indians to adopt this new age asset class. We look forward to the next steps on this,” said a CoinDCX spokesperson.
On private cryptocurrencies:
On Private Cryptocurrencies, Hitesh Malviya, Founder, itblockchain.com, India’s first and oldest Blockchain cryptocurrency publication, “We have a lot of ambiguities with respect to the definition of private cryptocurrencies which are creating chaos among retail investors right now. It’s difficult for herds to behave, they’re panicking without even knowing the definition.”
Cryptocurrency as legal tender:
The central government will not allow cryptocurrencies as a legal tender in India. This means you cannot go to a restaurant, dine and pay in cryptocurrency. Similarly, you cannot go to a bank and ask to convert your cryptocurrency into rupees. Only a few countries, including El Salvador, have so far accepted cryptocurrencies as legal tender.
During Budget 2018-19, the central government had said that it would take “all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payment system.”
All eyes are now on the winter session of Parliament for the future of crypto in India.
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