Things have changed drastically since last year when the Indian government was really close to banning digital currency. Now, it seems like the Indian government has given up on the idea of banning cryptocurrencies. According to a report in Economic Times, The government is likely to take a middle path on cryptocurrencies and modify the earlier draft of the bill as it gets ready to table the bill in the upcoming winter session of Parliament.
Though Cryptocurrencies are legal in India, they are not regulated. This makes investors vulnerable to scams and fraud. The crypto industry has been seeking better inclusion, with few voices even asking the government to make crypto a legal tender. While making crypto a legal tender seems a far-fetched reality the government is looking to find a middle route which balances the concerns of all involved. Cryptocurrency in India: Top 5 Crypto Exchange Apps in India for Online Trading
The Reserve Bank Of India(RBI) had in 2018 banned banks and other financial institutions from facilitating transactions in digital currency. The Supreme Court reversed the order in 2020 allowing trading of virtual coins like bitcoin. Since then, though the government has considered the implementation of crypto legislation, but RBI remains extremely critical and continues to support its ban.
As Indian investors have put large volumes of investments in cryptocurrencies the government is of the opinion that it would not be a right step to outrightly ban them.
When the bill is tabled and if it eventually passes in the Parliament, Bitcoin and other cryptocurrencies will classify as digital assets but not a legal tender. This will mean that while you will able to invest in crypto and hold it for long periods, these digital coins won’t be a substitute for the Indian Rupee.
As of now there is a lot of scope for scams involving cryptocurrency. The bill could also be of help to protect investors against any wrongdoing. Cryptocurrency Investments In India: Know How Much Tax Does India Charge For Profits on Digital Currency
Cryptocurrency market in India grew 641 percent in the past year, driving growth of digital currencies in central and Southern Asia, according to a report by Chainalaysis.
(The above story first appeared on Morning Tidings on Nov 09, 2021 03:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).
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