The Fate of Cryptocurrency in India

Will Cryptocurrency Become Legal in India or Not?

Cryptocurrency has garnered a welcome response from all over the world. And the same positive reaction was showered by Indian investors. The majority of Indians are invested in digital currency to reap financial benefits. 

The Future of Cryptocurrency in India is still in Dark!

When RBI lifted the ban on cryptocurrency in March 2020, Indian investors showed their solidarity with the digital currency. Hence, this step benefited most of the cryptocurrency exchanges in India.

Why Invest in Cryptocurrencies?

Cryptocurrencies have given tremendous returns

1. The foremost factor is the return on the cryptocurrency, and despite being a highly volatile asset, Bitcoin has surged more than 50% in 2021.
2. Cryptocurrencies offer robust, reliable, and long-term value addition to investors’ wealth.
3. They are not bound to any limited supply as compared to fiat money. Furthermore, they are prone to any inflation, as their value is refrained from dilution by any political body or government agency.
4. Governments are unable to impose taxes on it due to its cryptographic nature.

Is Cryptocurrency Legal in India?

Cryptocurrency is finding a legal status in India

As per official data, more than two crore people in India have invested $6.6 billion in cryptocurrencies. Furthermore, this data is positively rising with time.

In 2021, a new bill came into existence known as Cryptocurrency and Regulation of Official Digital Currency Bill 2021. This bill has brought respite to Indian cryptocurrency investors, as the prior bill (Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019) passed in Parliament. The latter bill demanded a total ban on cryptocurrencies in India.

As of now, cryptocurrencies in India are free from any regulation or ban.

Controversies Around Cryptocurrency in India

The road is not smooth for cryptocurrencies in India because certain organizations in India demand complete ban on crypto in India. Swadeshi Jagran Manch passed a resolution stating that it wants a complete ban on the digital currency and whosoever found to be dealing in it shall be punished under the Indian Law. 

Cryptocurrency Has Sparked A New Controversy

Additionally, it states that the current cryptocurrency holders can sell their holdings in a short term, subject to provision of submitting information to the Indian Income Tax department.

Conclusion

Cryptocurrency is the future of digital currency. El Salvador is the first country that has accepted cryptocurrency as a legal tender. Furthermore, it has initiated transactions with it. We can not deny the fact that cryptocurrencies are facing a rollercoaster ride in India! The RBI and government are answering the issues promptly on it. We have to wait for the new government orders to ensure the future of cryptocurrency in India.