Stock markets and blockchains are two of the major heatedly debated topics in the world of economics and finance. Their volatile nature leaves even the best of investors in doubt and excitement alike. This also includes questioning cryptocurrency’s legality. So, is it legal to buy cryptocurrency in india? This further proposes two leading questions for potential investors:
- Has India banned cryptocurrency? Most certainly not.
- Does that make cryptocurrency a legal tender in India? Well, not so easy.
After examining cryptocurrency’s legality, during the initial years of this newer digital asset, RBI released a circular clarifying that the red-hot virtual currency is not a legal tender in the country. After all, it is a digital asset that is unpredictable and holds the power to lead a diverse country into the hype. In the last decade, Cryptocurrency faced issuing, altering and withdrawal of several policies moderately for and severely against its trading. While transactions from cryptocurrency exchanges were allowed, several institutions and representatives of financial authorities proposed schemes to ban them.
Whether it is legal to buy cryptocurrency in India or not is unestablished. Even after quite a few proposals, cryptocurrency has never been banned but curbs were imposed on its trading. This was soon followed by a valuable period for crypto bodies as the Supreme Court of India lifted the curb restricting banks and other financial institutions from providing access to banking services to those engaged in buying, selling and exchange of crypto assets. The action by the most legitimate body in the country drastically promised compelling times for the digital asset market and provides better clarity over cryptocurrency’s legality.
So where does Cryptocurrency’s legality stand now?
Well, even though there are still various unclear and cryptic proposals and agendas, the government of India has boldly established that it is considering legislation to “regulate” crypto’s use in the country. Despite being the hotspot of trading even the U.S. lacks clear rules for asset management on digital platforms like blockchains so India’s step forward towards legislation seems profitable in the long term. This suggests that crypto traders/investors can practice their freedom to invest, observe and evolve in a highly thrilling market.
But, remember that investment ≠ transactional benefit – because cryptocurrencies like Bitcoin are not “legal tenders; forms of money recognized by the court of law as means of payment”.
The economy is fascinating and the government of India is going to establish rules for cryptocurrency’s regulation shortly. Until a bill is passed, investors/traders can safely participate in the market of finance enthusiasts.
