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Are cryptocurrencies banned in India?

Cryptocurrency in India
Cryptocurrency in India- Image Source: Pinterest

“Cryptocurrencies are not illegal in India.”

The government was expected to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the Budget Session of the Parliament in March. However, it was deferred. The ET report indicates that the bill could be tabled in the upcoming monsoon session.

The government had earlier suggested that it will not impose an outright ban on cryptocurrency in India. A report suggests that the government is likely to appoint a panel of experts to explore how virtual coins can be regulated.

So if you want to buy, let’s say Bitcoins, you can do so and start trading in it. However, India does not have a regulatory framework to govern cryptocurrencies as of now. 

Around 7 million Indians have already pumped in over $1 billion

In mid-2019, a government committee had suggested banning all private cryptocurrencies, with a jail term of up to 10 years as well as heavy penalties for anyone dealing in digital currencies. However, the Supreme Court in March 2020 overturned RBI’s circular, permitting banks to handle cryptocurrency transactions from traders and exchanges.

While the government has some reservations regarding cryptocurrencies.

India is also working on its digital currency.

Reserve Bank of India (RBI) Governor Shaktikanta Das had said in February while announcing that RBI is working on its digital currency.

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