Are All Crypto Activities Restricted in India?
There has been a lot of talk about what the future holds for cryptocurrencies in India with the ongoing discussions about the crypto bill. Let’s take a look at some of the frequently asked questions and what we know about them.
Is Crypto Activity Banned in India?
Cryptocurrency isn’t banned in India, and it never was. In 2018, the Reserve Bank of India (RBI) issued an official directive to banks and financial institutions asking them to stop doing business with crypto exchanges. Later, in 2020, the Supreme Court struck it down, and crypto exchanges started to show up in India and gained popularity. Once again, in May 2021, the RBI sent an informal note to banks to be cautious while dealing with crypto exchanges. This resulted in the overnight withdrawal of banks from crypto exchanges, as well as a temporary halt in deposits in Indian Rupees. In less than a month, things cleared up, but some banks still remain wary.
Is Crypto Trading Legal in India?
As of now, there is no law claiming crypto trading is illegal or banned in India. But as we know, the government is working on a crypto bill that will regulate crypto trading in India. It might tell us how crypto exchanges can function, how cryptocurrencies will be taxed, and other such things.
Is Crypto Mining Legal in India?
Only the government can print currency notes, and it is illegal if anybody else does it. But there is no legal tender for mining cryptocurrencies. This remains unregulated at the moment. This means the government hasn’t banned crypto mining in the country. As people perform crypto-mining using personal computing equipment, it doesn’t interfere with any law as of now. The upcoming crypto bill will hopefully shed more light on this as well.
Is Blockchain Technology Legal in India?
The underlying technology of cryptocurrency is blockchain. Despite its use in the creation of cryptocurrencies, blockchain has a wide range of other applications. And the use of this technology is legal in India, just like other technologies like AI and ML. The RBI is developing a Central Bank Digital Currency (CBDC) based on blockchain technology. Some state governments in the country have been using this technology, while some others are planning to.
Final Thoughts
With the news about the crypto bill in India, things have heated up in the crypto world. As of now, there is no law regulating crypto activities in the country. We will find out more about it with the upcoming crypto bill.
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