Future Of Crypto Currency In India

Cryptocurrency is growing in its size and popularity day by day. Many countries are accepting the digital currency wholeheartedly. However, in India it may take some time.

The government of India has not approved trading of the cryptos in India, but they are planning to regulate it soon. To understand it completely and what future cryptocurrency market has in India let’s dive in.

Cryptocurrency in India

If online data are taken there are more than 7.5% Indians owning cryptocurrency in 2022. The number of traders has increased during the COVID-19 lockdown and is expected to increase more.

Several Indians are showing interest in the financial market. It is a sign of progress for financial traders but the government of India is still thinking about making it legal. Finance minister Nirmala Sitharaman in her Union Budget of 2022-23 has given significant announcements regarding it.

The government is soon going to launch its own digital coin. Besides, it will levy 30% tax on profits earned from cryptos assets or digital rupee. The announcements have given hope to the digital traders that may soon get legalisation in India.

Digital coins have been in circulation since 2009. But India has not yet made any regulatory framework to govern the crypto market.

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This has created uncertainty for the traders in India who wish to enter the market.

Terms of Indian Government of Regulating Cryptos

The Indian government is soon expected to set the regulatory framework for crypto trading. But till then we have the following points that traders of digital coin in India can consider:

• Reserve Bank of India (RBI) in 2017, issued a statement that cryptocurrencies and virtual currencies are not legal tenders in India. But there is no ban as of now on coin trading.
• In 2019, RBI issued that trading, mining holding or transferring of cryptocurrencies is subject to punishment in India. It has a financial penalty and imprisonment up to 10 years.
• Also, RBI announced that it can issue digital currency of India soon.
• In 2020, the ban on cryptocurrencies by the RBI was removed by the Supreme Court.
• In 2022, the finance minister mentioned in their union budget of 2022-23 that transfer of digital currencies will be subject to 30% tax dedication. Also, gifts in the form of digital coins will be taxed in the hand of the receiver.
• In 2022, RBI again suggested ban on cryptos due to destabilising effects. It was for India's monetary and fiscal maintenance.
• Besides, RBI has issued a pilot test of digital coin in India in November 2022.

Does Cryptocurrency have a chance at a future in India?

The steps the government of India is taking and how digitalisation has taken over the world after lockdown certainly shows a bright future for cryptocurrency trading. Traders can invest in digital currencies using the trading platform approved by Securities and Exchange Board of India (SEBI).

But, traders should know what are the limits they can trade these coins. The Indian government may soon announce a new digital coin of India. It will be the legal tender of the country.

Also, Indian youth is highly passionate about cryptocurrency trading. They find it to be the future of the world. There are around 15 to 20 million Indian investors. It is becoming the highest country with cryptocurrency ownership.

Thus, the Indian market holds a bright future and traders can keep looking for news releases from the Indian government.

So, the government is expected to soon make new announcements to protect the interests of the public of the country at large.

Conclusion

The Indian market has a bright future for cryptocurrency trading. Traders of the country are highly trading in digital coins. In addition, the government is soon going to frame regulations on the cryptocurrency market.

The article has given all the aspects of the cryptocurrency market in India. Besides, the news or changes in it are also discussed for traders' knowledge. On the basis of them we can conclude that cryptocurrency market has chances in India.

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