What’s the first thing that comes to your mind, when you read or hear the word ‘Cryptocurrency’? Let us guess… it is Bitcoin, right! Well, you are not alone, most of the people in India, especially adults, contemplate crypto as Bitcoin only. Yes, Bitcoin is still the frontrunner in the crypto game. But today, there are 300+ altcoins (alternative cryptocurrencies) out there that are emerging as you’re reading this.
You can learn more about them over the internet. There are tones of articles which can guide you to invest in ‘the best cryptocurrencies of the year’, apparently. Or if you’re an adult, ask teenagers in your household, for all you know they must be investing their pocket money in Dogecoin right now!
Let’s not wander ourselves from the subject here, but before knowing if it is legal or not to trade in crypto in India, we shall understand the exact meaning of cryptocurrency.
What is cryptocurrency?
A cryptocurrency (or “crypto”) is a digital currency or a digital asset that functions as a medium of exchange to buy goods and services. It is secured by cryptography and works on blockchain technology. In simple words, it means that the transactions made in crypto are decentralized i.e. no third party can interfere in the middle – neither a company nor government.
Data is secure from any kind of malware. You can think of it as digital gold! Trading in crypto means buying any of such coins, and selling them later when their price would ‘hit the moon’. There are multiple trading platforms in India such as WazirX, CoinDCX, CoinSwitch Kuber etc. You’ll just need your Aadhaar and PAN card details for KYC registration and that’s it, you can jump right into the crypto world and trade.
Now the main concern, is it legal to trade in crypto in India?
No, crypto is not legal in India, yet. It is also not illegal, yet. Well, the Government of India has not stated any formal law regarding legalization or banning of cryptocurrency in India. But a law appears to be in the formation to ban cryptocurrency in India, as per sources.
A senior government official stated that India will soon criminalize the possession, trading, mining, transferring of any kind of crypto assets. If this law gets passed, then India would become the first nation to ban possessions of cryptocurrency. (China has only banned mining and trading)
So, if you’re a crypto head, consider trading in crypto as a risk (if you live in India of course), not just because it is a dynamic market but because you could lose all of your investments overnight.
