The legality of cryptocurrency in India is a question that has been asked over and over again.
Is it legal? Is it not?
There has been a lot of confusion surrounding whether or not cryptocurrency is legal in India.
Is there any regulation on the matter, or are we all left to our own devices?
For those looking for an answer, I will try to help you understand the situation and answer your questions with this blog post.
Is Cryptocurrency Legal in India Today?
Bitcoin and other cryptocurrency or virtual currencies are legal in India right now, and the new RBI circular clearly confirms this. But currently not regulated by the Indian government as of when writing this.
However, one thing is clear:
Bitcoin and other digital tokens are not considered illegal in India. So you’re free as an Indian to buy, sell or trade Bitcoin and other related cryptos.
Although, there’s been plenty of speculation on whether cryptocurrencies will be legalized within emerging economies like India where it has become very popular over recent years.
Due to its lack of regulation which appeals greatly because many may see this as an opportunity for illegal transactions that evade authorities such as law enforcement officers who could potentially investigate these types of crimes if given incentive.
However, there have also been reports from sources close at hand testifying otherwise stating “The RBI (Reserve Bank of India) had said earlier that it does not consider cryptocurrencies – including bitcoins -a legal tender in India”.
That’s in the past.
You know, back in 2018 the RBI banned banks and every regulated financial institution from dealing with cryptocurrencies and virtual currencies of every form.
Back then, the RBI also reiterated its stance on cryptocurrencies – stating that:
“any user, holder, or trader of virtual currencies is doing so at their own risk. Virtual Currencies (VCs) are not backed by any kind of assets and do not have any inherent value”
While simultaneously citing concerns over performance measures such as volatility and high risks for investors.
Then in 2020, the Supreme Court of India decision ruled the ban on exchanges unconstitutional, allowing them to reopen.
So, in essence, what this means for Indians is that, if they wanted to trade in cryptocurrencies, it would be legal for them to do so.
Lets take a look at…
Top 20 Cryptocurrencies to invest in India
Which cryptocurrency is best to invest in India?
It is a difficult question with no clear answer.
The best cryptocurrency to invest in India depends on many factors like:
The amount of risk that you are willing to take, your investment time horizon (i.e., how quickly do you want liquidity), and what crypto wallet will be used for storing them?
That said, in my opinion, below are my favorite cryptocurrencies you can invest in as an India:
- Bitcoin (BTC)
- WazirX token (WRX)
- Ripple (XRP)
- Ethereum (ETH)
- TRON (TRX)
- Binance Coin (BNB)
- Cardano (ADA)
- Matic Network (MATIC) (rebranded to Polygon)
- Solana (SOL)
- Ethereum Push Notification Service (PUSH)
- Kasuma (KMS) PancakeSwap (CAKE)
- Polkadot (DOT)
- Terra Virtua Kolect (TVK)
These are really awesome projects you can consider investing in as an Indian. You can check out the list of the best cryptocurrency to Invest in India for further analysis of these coins.
Some people might be wondering if investing in these currencies is a safe option, but the answer to that question would boil down to your risk tolerance levels and not much else since there are no guarantees when it comes to investments of this nature.
If you’re looking to buy or invest in these coins as an Indian, then you can buy them on the following exchanges:
- Binance India (most popular crypto exchanges globally)
- WazirX (Binance-owned Indian crypto exchange and India’s largest crypto exchange)
- UnoCoin (one of the first in India)
Is Cryptocurrency regulated in India?
At the moment, cryptocurrency is not regulated in India.
This means traders are subject to a high degree of uncertainty in terms of taxation and regulation.
As you might have known, cryptocurrencies have been a hot topic in India for the past couple of years.
With no legislative framework, what will happen to investors?
India is one country where cryptocurrencies are particularly popular and yet there is still no legislation that governs them at this time.
As of now, anything can be done with virtual currency which leaves many people wondering how they should protect themselves against any potential scams or issues related to money laundering.
As India’s economy continues to grow rapidly, many people have become interested in trading cryptocurrencies as well.
Traders need protection from scams because they often get duped into paying large sums just so someone can send back an equal amount; this makes it hard on these investors who don’t know if they’ll ever be able to recoup all those losses when working with shady individuals overseas.
Additionally, Indian citizens face difficulties transferring assets abroad without being discriminated against by banks – a problem even worse than most other countries.
Some people might be wondering if Crypto activities are regulated in India, and the answer to that question is No.
However, from my research, I gathered that the Indian government is planning to bring in the “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021,” which is expected to clear the government’s stance once and for all.
So it’s best we wait and see what happens soon with crypto regulation in India.
Do Indian banks accept Bitcoin or any type of Crypto?
Some people might be wondering if Indian banks accept Bitcoin or any type of Crypto at all, and the answer to that question is No.
Indian Banks are not accepting crypto yet due to lack of regulation in India which would also require a decision made by RBI, (Reserve Bank of India).
But soon we hope there will be some form of regulated cryptocurrency for use in banking institutions as well as public spaces such as ATMs with exchanges etc., once the bill becomes law and gets passed.
How can I buy Bitcoin legally in India?
You can only buy Bitcoin in India through crypto exchanges.
If you want to buy Bitcoin, Ethereum, or other cryptocurrencies in India, then it is recommended that you do so through popular international cryptocurrency trading platforms like Binance, Coinbase, and Kraken.
You will need to do that via a credit card, bank transfer, or mobile money.
As cryptos can only be purchased as fiat currency (INR) on these exchanges and converted to your preferred coin or token.
Can you buy crypto with a credit card in India?
Of course, you can buy your favorite cryptocurrencies with a credit card in India
You will need to use a crypto exchange account like WazirX, Binance, or Coinbase where you can purchase Bitcoin with your credit card and then trade it for other cryptocurrencies in India.
If the cryptocurrency is not available on that exchange, you may be able to convert them from one type of virtual currency to another before exchanging them at an Indian crypto trading platform.
The process relies heavily upon getting exposure to different types of currencies which should work well for traders who want diverse portfolios while also playing into the hands of speculators looking for arbitrage opportunities between exchanges.
Is Coinbase legal in India?
Yes, Coinbase is legal in India. You can sign up with Coinbase and manage your crypto easily and securely in India as this cryptocurrency platform is available in over 100 countries worldwide.
Is Binance legal in India?
Yes, the Binance crypto exchange is legal in India.
In an unprecedented move, leading blockchain company – Binance acquired WazirX in 2019.
This acquisition makes it the first global cryptocurrency exchange to offer fiat trading pairs with Indian rupees on its platform through a new gateway and marks yet another stop on its journey towards creating the world’s largest decentralized financial ecosystem for traders of all levels and backgrounds.
How can I sell my Bitcoin in India in 2021?
To sell your Bitcoin in India, first, you need to convert it into Indian rupees. You can do this by selling or swapping your Bitcoin on a crypto exchange like WazirX or Binance.
Is WazirX safe in India?
Yes, WazirX is 100% safe in India because it was originally a registered company in India. Then was later acquired by Binance exchange in 2019 and its goal is to make crypto accessible for everyone in India.
WazirX is also a highly safe crypto exchange in case you’re wondering.
Can I convert Bitcoin to cash in India?
Of course, you can! To safely convert your Bitcoin to cash in India, all you have to do is to, first of all, convert your Bitcoin to Indians’ own fiat money in your exchange, then move the converted currency into your Indian bank account.
What is the future of cryptocurrencies in India?
The future of cryptocurrencies in India is unclear.
The Indian government has issued a few statements about their views on digital currencies, but they have not been clear or decisive enough to set an agenda for the currency-driven economy’s regulation.
But based on the direction the world is evolving and Blockchain becoming popular every day, I would come to the conclusion that the future of cryptocurrency in India looks promising, but there are still some things that need to be settled.
There’s no doubt about it, we’re heading into a new era of the financial world.
Is Bitcoin or Cryptocurrency taxable in India?
Cryptocurrencies and Bitcoin are major topics of discussion in the Indian economy.
Although they are not mentioned in India’s income tax act, you must report them in your income tax return and pay tax on them.
On the other hand, the Reserve Bank of India (RBI) has not yet granted Bitcoin or any other cryptocurrency the status of legal tender in India.
Hence, there are no clear rules or guidelines right now defining taxability for cryptocurrencies.
Is Cryptocurrency banned in India?
No. Cryptocurrencies are not banned in India.
Is trading in cryptocurrency legal in India?
The trading of cryptocurrencies is still legal in India. However, the RBI is looking into anti-money laundering and combatting terrorism financing with a special focus on cryptocurrencies.
Is investing in cryptocurrency legal in India?
Oh yes, you’re free to invest in cryptocurrencies in India.
Is mining cryptocurrency legal in India?
The RBI has not addressed the legality of mining Bitcoin or other cryptocurrencies at this point in time.
For income tax purposes, the Indian government views Bitcoin as a commodity and considers transactions involving it to be subject to capital gains taxes.
However, there are no guidelines yet on whether miners should include digital currency profits when filing their returns.
Is buying and selling cryptocurrency legal in India?
Trading and selling of cryptocurrencies are allowed for Indians, and there is no ban on it.
You are required to trade in cryptocurrency via the open market platform that you use – one such example being WazirX.
Which is better for Indian – Wazirx or Binance?
Binance generally is better than WazirX. It has more cryptocurrencies, and you can trade in Indian Rupees – the currency of India.
Moreover, it provides faster transactions too.
However, due to the fact that WazirX happens to be an India-based company and enables you to trade in cryptocurrencies for INR – the currency of India, it is considered better than Binance for Indians.
The coolest part of it all right now is that Binance now owns WazirX and it’s now freaking easy for users of both to enjoy the combined benefits.
Is Cryptocurrency Legal in India – Final Thoughts
The bottom line is this:
Cryptocurrency is legal in India.
And the better news for India is that the country has already seen a fair share of its own success stories with Blockchain startups.
Like I mentioned earlier, you can get started by signing up for crypto exchange platforms supported in India.
- Binance here
- WazirX here
- Coinbase here
Also, never forget to do your due diligence and invest responsibly.
So you see? Cryptocurrency has quite an encouraging future ahead for Indians because they’ve got something going for them: A growing economy coupled with a rising population which makes for a promising market opportunity for Blockchain startups.