Which cryptocurrencies can be traded legally in India

Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in India

Indian government can take strict action on cryptocurrency. There are many Indian investors and traders who have invested money in cryptocurrency.

 Ever since this news has come in the Indian crypto market that the Indian government can regulate the cryptocurrency, then there has been a stir in the Indian crypto market. Investors do not understand what to do now. Should cryptocurrency investors in India hold and sell crypto? Should I invest in cryptocurrency? In today's article, we will discuss on this matter and explain our website viewers in a simple language that what bill can the Indian government pass in winter session to regulate cryptocurrency in India?

Questions:

Can cryptocurrency completely ban in India?

Answer:

 Let us tell you that the Indian government may allow some cryptocurrencies to be traded as an asset. But let us also tell you that it cannot be used to do any transactions in Indian cryptocurrency. Giving a scathing process on the cryptocurrency of the Reserve Bank of India, has also asked the government to ban it completely. But now it has to be seen what action the Indian government takes in the upcoming cryptocurrency bill. One thing is clear that on investing and trading cryptocurrency in India, you may have to pay more tax to the Indian government.

Question:

What will be the Process to regulate cryptocurrency in India & How Cryptocurrency Bill will be proceed further?

Answer:

The Prime Minister's Office PMO, is going to have the final seal on this cryptocurrency bill coming in the winter session. If the crypto bill is approved in the PMO office, then after this the cryptocurrency bill will be sent to the cabinet and then later it will be presented in the parliament. All of you also have to note that it will not be so easy because the proposed bill to be introduced in the Parliament talks about banning all private cryptocurrencies. But some cryptocurrencies may also be approved as exceptions under the technology used in cryptocurrencies.

 Questions:

Which Cryptocurrencies will be allowed to trade in India?

Answer:

As per the sources Indian Finance ministry may give approval to One or two cryptocurrencies to trade in India under strict regulations. But RBI is not in favour of it and RBI want completely ban on Cryptocurrencies. But the cryptocurrencies having transparency records of transactions and securities of investors money may get approval to trade in India. In the Upcoming budget of India, We may see some strict guidelines to pay tax on cryptocurrencies trading if It will be considers as asset. As per our knowledge Bitcoin & Ethereum, both these cryptocurrencies has better chances to trade in Indian cryptocurrency market in near future. But it is not official confirmed yet.

Question:

What is total amount of investment of Indian investors in Cryptocurrency market?

Answer:

Since the news about the regulation in the Indian cryptocurrency market has come, then there has been a huge decline in the cryptocurrencies. According to the estimates of a private cryptocurrency, the most popular cryptocurrencies such as bitcoin, ethereum, polkadat, dogecoin have recorded an average decline of 18 to 20 percent in value. According to an official data, more than 100 million people have invested in cryptocurrencies in India. Indian investors will invest more than 10 billion dollars in cryptocurrencies i.e. around Rs 75,000 crore in the year, so last year in April 2020, investment in cryptocurrencies was around $ 90 million, which was around Rs 6,500 crore worth. No one knows that this much investment came from eating in the Indian cryptocurrency market. That is why the Indian government now wants to take strict action.

As per the records till date, there are 15 cryptocurrency private exchanges operating in India. People investing in cryptocurrencies are looking at the high returns that come with it. There is a lot of uncertainty regarding crypto right now due to the absence of a regulator in the sector.

Question:

What should investors do if cryptocurrency is banned in India?

Answer:

Cryptocurrency market is not only in India but it is an international business. If the Indian government bans cryptocurrency in India, crypto property should not panic because buyers of cryptocurrencies can be found in other countries. It will be important to see how much time the government gives. If the cryptocurrency is completely made in India, then globally the price of crypto can fall drastically and it may also happen that investors may have to suffer huge losses if they sell in a hurry.

Question:

How many Indian’s are not in favour of cryptocurrency to give Legal status?

Answer:

According to government official sources, more than 50% of Indian people are not in favour to given legal status to cryptocurrencies in India because as per their views, cryptocurrency may increase fraud rate in the financial markets & It can also increase illegal activities in India.

People are more in favour crypto be recognized as a digital asset held abroad and taxed accordingly. As per some media sources one survey had conducted in which  More than 55,000 people living in 342 districts of the country. In the survey, 26 percent people said that in this way virtual currency should be given legal status and it should be taxed.

Questions:

How many cryptocurrencies are trading in the world?

Answer:

As per current data there may be more than 6,000 cryptocurrencies . Out of which most of them are private cryptocurrencies and having not much security features and transactions records. Investors buy cryptocurrencies for two reasons. One for the higher price and the other for the payment. Now the question arises whether we really need 6,000 virtual currencies for making payments. In the coming years, one, two or even virtual currencies will be required for payment.

In nutshell, the proposed bill will take into account the aspirations of Indian cryptocurrency holders, Indian crypto entrepreneurs and investors. Crypto bill should have enough flexibility for new blockchain projects to flourish. These are the expectations from crypto investors in the cryptocurrency bill.

Our recommendation on cryptocurrency:

If we will read our above detailed discussion then you will analysis that at this point of time there very risky to start invest in cryptocurrencies in India. Many private and unsecured cryptocurrencies may ban in India for trading and investment. We can say that crypto traders and crypto investors should wait for more clarity to come from Indian government on Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in India. It is better to book profit and wait right time to start investment in cryptocurrencies if required.