Cryptocurrency is now the craze among youngsters. But often, people are worried and trying to go in-depth, finding cryptocurrency legality in India. With every new dawn, the number of investors is increasing, and until now, 10 million Indian investors are trading in the cryptocurrency market. Every Indian now is waiting to see how Bitcoin regulation in India is going to reform. Therefore, in this blog, we will look at the possible roundabouts that sign to the direction of Indian investors.
Is Bitcoin Legal in India?
There are many conspiracies ongoing in the Indian market regarding Bitcoin, but people still think to invest in cryptocurrencies. But keeping all odds aside -
Yes, Bitcoin is legal in India.
But, this puts you under question how. One of my friends was saying that Bitcoin is still unregulated in India. Let us clear your doubts.
Yes, Bitcoin is legal in India, but it's indeed unregulated.
What do we mean by that? It's a little philosophical here, so you need to pay a little extra attention to it.
When one says, Yes, Bitcoin is legal in India but indeed unregulated. The government of India has not stopped people from investing in cryptocurrencies. Since day one, cryptocurrencies were a part of the trading environment of India. You can buy, sell, and HODL all your favourite cryptocurrencies, but unlike stocks, they are not regulated. The sole reason behind this is that for stocks, there is a central governing body that overlooks its operations; Securities Exchange Board of India (SEBI). In contrast, the cryptocurrency market is self-governed by all stakeholders, i.e., the exchanges and the investors.
Why cryptocurrency Still is Unregulated?
The lack of regulation is merely because of the following three reasons. These are:
Managing Decentralisation is Challenging
Cryptocurrencies, including Bitcoin, works on a decentralized system. That decentralized system is known as Blockchain that is away from the reach of any central governing body or an individual. The main reason why cryptocurrency was developed in a decentralized way is to ensure no person or authority have complete control over the cryptocurrency market. Therefore, it is difficult for the government to govern something that is out of its control.
Cryptocurrency is a New Men's Land Asset
Although, it's been a decade since cryptocurrencies have laid their foundation. And above all, it's a short span for an asset to be recognized and considered in the financial ecosystem of the country. When compared to gold, it has been over 64 years in India.
Now, cryptocurrency is going through the phase where central bodies of all countries are trying to design the framework in which it can fit and act accordingly. But there is nothing that has eventually worked out in India, but there are possibilities that the government will find a way around it.
Adoption of Something Unheard Takes Time
When it comes to the adoption of Bitcoin trading in India, people are seemed barred with the questions regarding its volatile nature. Experts in India have also claimed that the currency that fluctuates 10 or 20 percent in a day can not be considered as a currency. Many have also opposed the statement by giving their viewpoints that may be counterfeit.
Relationship Between Bitcoin and the Indian Government
In 2020, seeing the increased number of traders investing in cryptocurrencies, the Government of India decided to bring the new asset class into consideration. After noticing the advancement that it could bring along, the Indian government revised its decision of prohibiting banks from supporting crypto transactions and reversed the order.
The Finance Minister, Nirmala Sitharaman, is very vocal about the framework that is being constituted in support. The finance minister has assured people that they will soon come up with a nationwide acceptable framework.
Bitcoin regulation in India has been a topic of interest. Many big names such as Michael Novogratz, Elon Musk, Richard Branson, and MicroStrategy, GreyScale, Tesla etc., have supported cryptocurrencies. In India, Rakesh Jhunjhunwala, Amitabh Bachhan etc., also have invested in Bitcoin.
Flitpay allows you to do Bitcoin trading in India. If you are looking to invest in cryptocurrencies and want to have a hassle-free process, you can signup/login on to Flitpay and enjoy the best in Indian crypto industry features.
