Cryptocurrency In India: Is it legal? And what does the future hold for the crypto world?
Whether you are a crypto enthusiast or not, by now you must have heard about the world of crypto or at least gotten a whiff of how the market operates.
While many countries are wrapping their heads around accepting it as an alternative form of investment, Cryptocurrency still remains beyond any regulation in the country; however, there is a large movement around promoting transparency regarding crypto transactions.
While crypto investors await the official verdicts on cryptocurrency exchanges in the country, the opportunity to leverage this grey space is important, now more than ever.
India has an increasingly strong base of cryptocurrency investors and exchanges.
But is Cryptocurrency Illegal In India?
We’re glad you asked. At present, Bitcoins and other cryptocurrencies are beyond the purview of legal regulation in India. So they are technically not illegal, because they aren’t authorised for use by any central authority in the country, however, at the same time, they aren’t exactly what you’d call traditional investments. Cryptocurrency remains outside the scope of any guidelines, regulations, or rules. This makes Bitcoin and altcoin transactions riskier because disputes arising from these exchanges will not be legally bound.
Let’s talk about Cryptocurrency Taxes
Now there’s another interesting topic. Though India hasn’t yet imposed regulations on cryptocurrency transactions, as an investor, you are still expected to maintain complete transparency in all your investments.
In April, the Companies Act went through a couple of amendments that made it compulsory to disclose your digital assets and the gains thereof were to be counted as a capital asset, which is bound by taxes under capital gains.
So, HODL on the crypto wave?
The Cryptocurrency Bill is speculated to be tabled during the Parliament’s winter session this year with the aim to define and classify cryptocurrency, given the technology involved in this. This will streamline the treatment of it as an asset and taxation will become much simpler a process thereafter.
Now, what’s next?
Given that the crypto world holds tremendous potential in becoming the next big deal in the investments space, you can think of diversifying your portfolio and keeping a small fraction of your portfolio in the space. You can do this through multiple platforms like CoinDCX, CoinSwitch Kuber, WazirX and Defy.club.
