The purpose of this article is to answer the question “Is cryptocurrency legal in India” We have collated and explained all the current laws, government notifications and Reserve Bank of India guidelines relating to cryptocurrency to analyse the legal status of cryptocurrency in India.
Firstly, the government intends to levy a 30% tax on any income generated from crypto transactions and a 1% secondary tax on all transactions (TDS) at source. Secondly, India intends to launch the digital rupee within the current financial year, the first time a timeframe has been mentioned. Thanks to these announcements, it is clear that the government is implying that cryptocurrencies are legal.
Timeline and rules and judgements for cryptocurrencies in India
Cryptocurrencies in India have a short but turbulent history. This is the complete flow of events surrounding cryptocurrencies in India with different judgements and regulations related to cryptocurrency transactions.
Are cryptocurrencies legal tender in India?
We first need to understand the concept of legal tender.
Legal tender is a medium of exchange that can be used to settle debts or to conduct transactions. The legal tender status of a currency allows it to be used for transactions and to settle debts. Currencies that have legal tender status are backed by the government that issued them. This means that the government will accept the currency as payment for taxes and other debts owed to it.
Bitcoin and other cryptocurrencies or virtual currencies are currently legal in India, and the new RBI circular clearly confirms this. Although investors and traders in India are free to trade and invest in cryptocurrencies such as Bitcoin, it is not legal tender. Therefore, the use of cryptocurrencies like Bitcoin to settle payments in exchange for goods and services, pay government dues or settle transactions is not recognised and may have legal implications
Overall, Cryptocurrencies are legal in India and Indians can use cryptocurrencies for transactions.
Top 10 best cryptocurrencies to invest in India in 2023
Which cryptocurrencies are the best to invest in India? The best cryptocurrency to invest in India depends on many factors, such as
the level of risk you are willing to take, the duration of your investment and what crypto wallet will be used to store them?
The following are the cryptocurrencies that investors like to word for investment in India.
Bitcoin
WazirX tokens
Ripple
Wavefield
Caldano
Terra Virtua Kolect
Kasuma (KMS) PancakeSwap
Dots
Terra Virtua Kolect
Some people also wonder if investing in these currencies is a safe option, but the answer to this question comes down to your level of risk tolerance and not much else, as there are no guarantees when it comes to investments of this nature.
If you wish to buy or invest in these coins as an Indian, the following exchanges are available.
Binance India (the world’s most popular cryptocurrency exchange)
WazirX
Paypal (the largest cryptocurrency exchange in India)
UnoCoin (one of the first in India)
Siren
