India and Cryptocurrency
Cryptocurrency is becoming increasingly popular around the world, with India being no exception. As of 2019, India was home to over 5 million cryptocurrency users and it is estimated that this number will rise in the coming years.
In 2018, the Indian government issued a circular prohibiting banks from providing services to any entities dealing with cryptocurrencies. However, in March 2020, the Supreme Court overturned this ban following a petition filed by Internet & Mobile Association of India (IAMAI). The court ruled that such restrictions were unconstitutional as they violated citizens’ freedom to trade as per their choice. This ruling led to more acceptance of digital currencies by Indians and opened up new possibilities for businesses operating in India related to cryptocurrency trading.
The Reserve Bank of India (RBI) has also been supportive towards blockchain technology but has warned its citizens against investing in virtual currencies due to their volatility and lack of regulatory oversight. The Indian government has proposed setting up a committee headed by Subhash Chandra Garg (former finance secretary), which will draw out regulations regarding digital assets like cryptocurrencies or Initial Coin Offerings (ICOs). In addition, it is expected that the Goods and Services Tax Network (GSTN) may soon be used for taxation purposes on crypto transactions made within the country’s borders.
Despite these developments there remain certain challenges associated with cryptocurrency trading in India such as ambiguous legal status due to lack of regulation; high transaction fees; limited access to global exchanges; volatile market prices etc.. Thus investors should exercise caution before investing large sums into virtual currency investments without proper knowledge or research.
