As top digital tokens such as Bitcoin and new ones like Shiba Inu attract investors from different sectors, India sees the crypto craze gripping the financial space. According to a renowned crypto website WazirX, over two crore individuals own cryptos in India. Moreover, Analytics Insight data indicate that Indians invested nearly $6.6 billion in digital coins until May this year. That translated to a more than 600% increase from April 2020, where the figure was $923. For now, more than 350 startups run in the crypto and blockchain space.
As modern investors jump into the cryptocurrency craze with that vigor, the biggest question for now remains – Is crypto legal in India? There’s no legislature covering crypto in India at the moment. Nevertheless, that doesn’t imply that crypto is illegal is in the nation. It means that India does not have a regulatory framework to protect crypto owners in India. To mend that, the central government plans to introduce a cryptocurrency Bill in the winter session.
The Crypto Bill So Far?
With the new crypto bill, India targets a ban on private cryptocurrencies. Moreover, it will offer a framework for RBI to create a digital currency. Also, it will prohibit all private cryptos in India. However, the bulletin indicated that the law allows exceptions to encourage the cryptocurrency’s underlying technology and crypto usage.
Crypto as an Asset
Cryptocurrency enthusiasts hope that the jurisdiction will not impose a complete crypto ban in India. The government might recognize crypto as an asset, similar to gold, stocks, and real estate. With that, the administration will impose taxes on profits acquired after cryptocurrencies sell.
CoinDCX spokesman said a thought-through and well-assessed regulation would attract more crypto technology adoption and allow many Indians to adopt the new asset class. For now, market players can wait what the near future will have.
Private Cryptocurrencies and Indians
Hitesh Malviya, the itsblockchain.com founder, commented on private cryptos. He stated that lots of unclarities surround private cryptocurrencies’ definition. That created chaos among retail investors at the moment, resulting in uncontrolled behavior. With that, most individuals are panic selling, not bothering to know the definition.