The legal status of cryptocurrencies in India has been a source of much debate. In India, cryptocurrencies are not outlawed but currently lack a regulatory framework to manage cryptocurrencies. This means you can purchase, trade, and hold Bitcoin like an investment, but there is no regulating agency to oversee or safeguard it.
Cryptocurrency is becoming very popular lately in India. Around 7 million Indians have already invested over $1 billion in cryptocurrencies, and the government faces a difficult problem in allowing the digital currency to thrive in India while ensuring that it is done safely.
The government proposed a bill in 2018 that would prohibit all cryptocurrencies, including Bitcoin and Dogecoin, from being used. The Supreme Court of India’s decision in March 2020 to overturn a 2018 rule prohibiting banks from assisting cryptocurrency sales is a pleasant change for a community that has faced criticism from traditional lenders who are needed to settle these transactions.
However, the Indian government is considering introducing a new bill that intends to ban private cryptocurrencies in India with certain exceptions in order to promote cryptocurrency’s underlying technology and trading, as well as provide a framework for the creation of an official digital currency issued by the RBI. The New Bill recognizes the legal issue of cryptocurrency regulations and intends to overtly ban all private cryptocurrencies. However, it remains unclear if all types of cryptocurrency will fall under the purview of private cryptocurrency.
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