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CRYPTOCURRENCY: IS IT LEGAL IN INDIA?




It’s been a very long time since the debate on Cryptocurrencies are going on between Reserve Bank of India (RBI) and Internet and Mobile Association of India. The peoples who are aware of cryptocurrencies and other Virtual Currencies (VC) are waiting for the positive signal from Indian Supreme Court. Like other developed countries, India too needs the democracy to use Cryptocurrencies legally. As per RBI, Cryptocurrencies are a little risky asset and they need much information to get it regulated in India.

RBI issued a “Statement on development and Regulatory Policies” on April 5th, 2018.
In which it directed the entities;

         i.            Not to deal with or provide services to any individual or business entities dealing with or settling virtual currencies and

       ii.            To exit the relationship, if they already have one, with such individuals/ business entities, dealing with or settling virtual currencies (VCs).



On 01st February, 2018, the Minister of Finance, in his budget speech said that the Government did not consider cryptocurrencies as legal tender or coin and that all measures to eliminate the use of these currencies in financing illegitimate activities or as part of the payment system, will be taken by the Government. However, he also said that the Government will explore the use of blockchain technology proactively for ushering in digital economy.

Then, on 05th April, 2018, the Inter-Ministerial Committee submitted its initial report along with a draft bill known as “Crypto Token and Crypto Asset (Banning, Control and Regulation) Bill, 2018”. But in this meantime, a few companies which run online crypto assets exchange platforms together with the shareholders/founders of those companies and a few individual crypto assets traders came up with the first writ petitions on hand.

The Reserve Bank of India had virtually BANNED cryptocurrency trading in India as in a circular issued on April 6, 2018, it directed that all entities regulated by it shall not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling those.



Since then few problems had arisen. Many new exchanges launches were on hold and many exchanges suffered a breakdown. Peoples turned negative and feared of investing in Cryptocurrencies. But there were other people who came forward and protested against RBI through campaigns and forums.

“INDIA needs Crypto” was the motto.

Now, lets talk about the aftermath of this effect.

Did it really affect the users and exchanges?

Somewhat Yes... but not purely it hit everyone. The BAN was not fully imposed, it was partial. It’s a BANKING BAN. The transaction related to cryptocurrencies through banking were banned. So, to tackle this problem an answer to this question is a P2P (peer-to-peer) trading exchange platform that enables one to purchase bitcoins in India even after the ban by RBI. A P2P exchange supports the most popular payment methods and allows individuals from different countries to purchase Bitcoin for their local currency.

BITCOIN wasn’t illegal ever in INDIA. It was just a controversial topic ever and whose judgement is awaited by many.

On 4th March, 2020 Supreme Court released the Banking Ban also and allowed Cryptocurrencies to flow in INDIA, but there is still a confirmation pending regarding regulatory of Virtual Currencies. The Crypto Exchanges are seeking forward for all guidelines/ rules and taxations from government. This might take time but for now, at least the Banking Ban is removed and a so called “BLANKET BAN” is turned off.


Amidst this, there are emerging CRYPTO EXCHANGES already geared up for the betterment of the crypto lovers. The best thing is that it’s MADE IN INDIA.

Let’s start with the first one.

bitpolo
Image Courtesy; bitpolo


A very new Exchange filled with enthusiasm and burning desire quality. Its journey begins from BANGALORE. The exchange, went live on 6 May. It was originally founded in March; the same month the Supreme Court ruled against the central bank's longstanding moratorium on crypto-related banking support. It’s an emerging trading platform which provides time tested cryptocurrency services with competence in finance and technology. They firmly believe that crypto is the future of finance. As per them question that we should ask ourselves is not ‘Why Crypto?’, but ‘Why Not Crypto?’

 Being an Indian, I feel proud to introduce bitpolo to my audience.
 
A screen shot of bitpolo Website.



Let’s hop to another Exchange from India named;



A screen shot of CoinSwitch Website.

CoinSwitch is a cryptocurrency exchange aggregator platform started from Bengaluru built to help users trade cryptocurrencies with ease and at the best rates. Their user interface simplifies the cryptocurrency trading and allows users to trade over 400+ cryptocurrencies, along with an ability to buy cryptocurrency with a credit card at the best price. It will launch its CoinSwitch Kuber app on June 1, 2020 — exclusive to users in India.

Let us all welcome and strengthen these two future leading Crypto exchanges of India with great power.

Now, the question is…

Is Cryptocurrency LEGAL in INDIA?

The answer is YES. It is LEGAL unless you use it legally.
If it is used for some dark work then it’s illegal and you’ll be punished for it.

 
Showing legality in India. You can see that even its banking ban is removed.
Image Courtesy: Wikipedia
I hope this blog will clear all your doubts and unsolved thoughts from mind. If you like the blog please share it with your contacts.


Happy Learning and Happy Earning.

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