Is Bitcoin legal in India?
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- Updated On:07-Mar-2021
- Replies:2
Short Answer
Even though there are no such set rules or guideline to monitor the transactions include Bitcoin in India, we cannot say that Bitcoin is legal in India, as of now.
Detailed Answer
With the new plans being discussed by the Government of India to ban cryptocurrency trading, mining, or investing in India, there is doubt among the investors is that if there are any legal restrictions in India for Bitcoin. Here we are going to answer your doubts so read it article thoroughly till the end.
What is a Bitcoin?
Bitcoin is one of the most popular cryptocurrencies worldwide, which is usually used for peer-to-peer transactions. It is a type of digital currency, which is considered to be more secure than real currencies. In India, Bitcoin gained a lot of popularity and there is a new discussion is going on to ban Bitcoin from trading, mining, or investing in India. However, it is not finalized yet.
Is Bitcoin Legal in India?
Bitcoin is a new concept in India which is never been authorized or regulated by the central financial authorities. So, there are no rules and regulations or any kind of guidelines exits for bitcoin transactions, mining, and investments. As a result of this, there are also no set guidelines for resolving any disputes arising from the dealing of bitcoin.
Apart from that, as mentioned before, the concept of bitcoins is also very new to the Indian market. There are also no tax regulations applicable on bitcoins. As Indian tax laws have always sought to tax the income generate through various forms so bitcoin should not be an exception as well. However, there are no set tax laws that are applicable for bitcoin transactions in India.
Even though there is no regulation for bitcoin transactions in India, it can not be concluded that it is illegal. Because as of now, there no law which says that investing in Bitcoin is not legal in India. In the year 2019, the Supreme Court of India said that Government should come up with a Cryptocurrency regulation policy, which is right now is being discussed in the Indian Parliament.
Future of Bitcoin in India
The future of bitcoin in India right now depends on the outcome of the new bill which is being discussed at the Indian Parliament. As of now, bitcoin trading is not illegal in India.
India is not the only country which is considering to pass a bill to ban all type of cryptocurrency trading, mining, or investing in India. Various other countries such as China, Singapore, Tunisia, Senegal, Ecuador have already launched their own digital currencies and other countries such as Japan, Russia, Sweden are also considering launching their own digital currencies.
India is also not far apart, RBI has also announced to introduce a new digital currency for India. Thus, what happens in the future with bitcoin is remains to be seen.
Conclusion
So we hope you got the answer to your question of is Bitcoin is legal in India? As of now, you can transact in bitcoin but future prospects of bitcoin will depend on the outcome of the bill discussed by the Government of India. What are your views on this digital currency? Should this be regulated so people can invest in it? Feel free to discuss.
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Discussion (1)
Cryptocurrencies are decentralized digital assets that are under the radar of the government. However, cryptocurrencies are not banned in India, but there are no proper regulations that categories them under a specific asset class. The Indian finance minister has also said Bitcoin will not be accepted as a method of payment which indicates that it might be regulated but not banned.
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