Is Cryptocurrency Trading Even Legal & Safe in India?, the previous years have been nothing short of a roller coaster. Numerous cryptocurrencies have had ups and downs on the market, and this pattern is still observable. Surprisingly, the cryptocurrency investment frenzy is picking more steam, and more people are expressing interest in beginning their cryptocurrency trading careers. But the lingering skepticism is what prevents them. Some individuals question if it is even safe and legal to invest in cryptocurrencies given the lack of government oversight.
Is Cryptocurrency Trading Even Legal & Safe in India?
If you were planning to invest in BTC in India, but the same doubts prevented you from investing, this guide is for you. After asking various seasoned crypto investors and going through the statements released by the government and individual we’ve curated this guide to answer all your common questions. So make sure you read till the end.
Is Cryptocurrency a Legal Tender in India?
The answer is no. The Indian government has not yet recognized cryptocurrency as a legal tender yet. But it doesn’t mean the government has outlawed trade in cryptocurrencies. It just doesn’t control it worldwide. Take the internet, for example. The internet is used by everyone in the world, but no government owns it. Cryptocurrency is quite similar. Currently, the Indian government only recognizes the Indian Rupee as the official and legal tender across the entire nation.
No regulations exist that either permit or forbid anyone from engaging in cryptocurrency trading. Therefore, you won’t have any legitimate authority to turn to if your cryptocurrency trading venture fails. Cryptocurrencies can be viewed as any other asset class, such as gold, real estate, etc. However, always remember that the market’s nature is highly volatile and risky, so invest wisely.
Is it Illegal to Buy & Sell Cryptocurrencies in India?
Whether you want to invest in Shiba Inu coin in India or any other cryptocurrency, you should know if investing in it is legal or not. Although the RBI forbade NBFCs, banks, and payment systems registered under it from enabling transactions using cryptocurrency, the Supreme Court of India made this ruling back in March 2020, The judgment alos allowed smooth facilitation of cryptocurrency transactions, paving the path for many crypto exchanges in the country. While buying and selling cryptocurrency is legal in India, but it is undoubtedly risky because of the high volatility involved.
Is it 100% Safe to Invest in Cryptocurrencies?
When it comes to the bitcoin market, nothing is completely safe. There is no assurance that you will make money from a cryptocurrency, regardless of whether you choose the most well-known or the most promising one. Investors who had the fortitude to wait their turn and had a good eye for profitable cryptocurrencies did well. But those who invested in haste and under the influence of FOMO ended up losing a significant portion of their investment.
Your choice of digital assets will therefore determine whether investing in cryptocurrencies is safe. Always do adequate research to understand where you’re aiming to invest your money in order to make sure you stay on the safe side. The more research you do, the better.
The Effects of Crypto Trading on Taxes
The government has made it essential for cryptocurrency traders to pay taxes, despite the fact that there is no clear structure or legislation surrounding cryptocurrencies. You will be required to pay taxes on all transactions, regardless of whether you generate a profit or a loss. Taxes will also be due if you intend to cash out your investment. The government has imposed a high tax rate on cryptocurrency transactions because it considers trading in cryptocurrencies to be gambling.
What Possibilities Do Indian Crypto Traders Have in the Future?
You might anticipate positive things in the future based on prior trends of bitcoin growth in India and elsewhere. Cryptocurrencies are here to stay, according to the growing pace and popularity of the technology. The government may decide to enact some regulations to oversee the entire industry, but trading in cryptocurrencies won’t be outlawed. So if you are trying to hold yourself back from starting your cryptocurrency journey, now is the best time to start investing.