What used to be considered a fringe investment by many Indians a few years back is now their most desired asset class. This journey of cryptocurrency from being nobody in the financial world to a no-brainer investment tool for so many people is indeed uncanny yet impressive. If reports from BrokerChase are to be believed, India has the highest crypto user base in the world. Around 100 million Indians own cryptocurrency at present, and more are expected to join the bandwagon in the coming years.
While people are investing in this highly speculative asset class, some people have raised concerns over the government’s remarks made against cryptocurrency, or the government’s stance on cryptocurrency, in general. It has raised concerns among the cryptocurrency owners in India as the fear of these digital assets getting banned looms over the entire space. But can the government ban cryptocurrency in India or are they planning to do it?
There are many questions related to it that we will try to answer in this article. So make sure you read till the end to get all your answers and know what the government has in store for cryptocurrency in India.
What is Government Planning to Do with Cryptocurrency? – Currently, the government has not taken any rigid stand on the banning of cryptocurrencies in India. While they are in talks about streamlining the process and trying to figure out the proper way forward, as of now, anyone in India can buy, sell or trade cryptos. The whole ecosystem of cryptocurrencies is currently unregulated and this is the aspect that the Indian government is exploring. Online exchange platforms have offered to lend full support to the government. Mediums like CoinSwitch have ensured to streamline the process by making KYC registration mandatory for all the investors to keep a strict check on the authenticity.
Important things to note – While there has been a lot of speculation and myths floating around the offshoot of investing in cryptocurrencies, here are a few facts that you can take into consideration:
- The government never explicitly stated that they were against technology and cryptocurrencies. The intention was always to prevent the misdoings, scams, and wrong usage of cryptos and blockchain technology.
- The finance ministry did not ban or prohibit trades conducted in cryptos. The stand has been that they would be taking measures to eradicate the usage of cryptocurrencies for financing illegal activities. This would be done to create and promote a healthy crypto ecosystem throughout the country.
- The finance ministry did not consider cryptos to be an acceptable part of the payment system or integrated into mainstream society. Having said that, they did not prevent it from being held as an asset.
- In 2021, when the discussions around crypto were taking the Supreme Court by storm, they acknowledged that the country cannot afford to not abide by the change that has been happening in the world about the adoption of cryptocurrencies. There has been an exponential return – approximately 800% from cryptos like bitcoin. Witnessing the surge in the bitcoin price and the significant profit that investors were receiving, it would be a bad move to ban it in its entirety.
Buying cryptocurrency in India – Considering the points above, it is clear that the Indian government does not have any stringent regulations against the purchase, trading, and holding of cryptocurrencies. This means that the citizens of India can feel free to invest in this asset and reap the significant benefits that it has to offer.
- To buy and trade cryptocurrencies, you need to have a virtual account set up. This account imitates a bank account or a Demat account. It will help keep your payments safe and is secure from hackers. To create this wallet, primarily, you would have to register on an online cryptocurrency exchange platform. Ensure that the platform you are choosing for yourself has – a high trading volume, safety in terms of KYC verification, low trading fees, is integrated with global exchange platforms, and is overall user-friendly.
- Download the cryptocurrency app or platform on your mobile phones or access it via your laptops, complete the formalities and registration by adding all the relevant details, submitting pictures of documents as required, and setting up the account. These steps will help to keep your money and transactions safe.
- Add funds into the wallet in INR. These funds will be used to buy the cryptocurrencies that you are interested in. The top platforms provide their users the option of choosing from more than 100 cryptocurrencies that are currently circulating in the market. Additionally, these platforms recognize the volatility and risk factors associated with cryptos, therefore, they allow their users to begin the process of this investment with an amount as low as INR 100.
- Once the cryptocurrency is bought, you will be able to witness the transaction on the online ledger based on the blockchain. The value of the crypto that you have purchased will be reflected on this wallet and you will be allotted a private key, which acts as a password that is unique to you, that you can use to access the value. You can choose to hold the crypto for it to increase in value or sell it to other users preferable at a higher price.
The process to buy cryptocurrencies is pretty simple in India. Now that your concerns have been addressed with regard to the legality of this aspect, do not wait any longer. Invest in this asset as it is known to produce returns like never seen before.