The government has once again given a strong message for those investing in cryptocurrencies. There is no proposal to recognize bitcoin as a currency in the country. The Indian government does not collect any data on bitcoin transactions.
At present, there is no law and order regarding cryptocurrency in India. Nor is it banned. It has not been recognized in any form by the government and RBI. Investors are trading in it according to their own. Not only in India, there is no regulation regarding crypto in many big countries including America, Europe.
Bitcoin is a digital currency through which people can buy goods and services and transact money without a bank, credit or other third party. Bitcoin was launched in 2008 as a cryptocurrency and electronic payment system by a group unfamiliar to programmers. It is the first decentralized digital currency, where peer-to-peer transactions take place without any intermediary.
- More than 7% of India s population has cryptocurrencies. And the average age of those investing in crypto is 24 years.
- 60% of crypto investors are from Tier II and Tier III cities.
- In addition to small exchanges in India, crypto trading takes place on 16 exchanges.
- 65% of people have invested in crypto as a first investment.
El Salvador, Cuba and Ukraine have separate laws for crypto. In the world, only El Salvador has a cryptocurrency legal tender. The IMF objected to the use of crypto as a legal currency in El Salvador. At the same time, cryptocurrency is completely banned in China, Indonesia, Egypt. Crypto is partially banned in Vietnam, Russia, Iran and Turkey.
Overall there is a positive attitude towards cryptocurrencies in the US. However, like in India, there are parallel rules between the central and state government, on crypto, as long as there is no bad effect on the financial system, then the environment is supportive.
In the UK too, cryptocurrencies have not yet been legalized, nor has any bill been introduced to regulate it. However, the UK has put in place a provision for licensing registered businesses to deal in crypto trading. And the way currency trading is taxed, crypto trading is taxed in the same way as UK.
China is very strict about cryptocurrencies. China initially allowed trading and mining of cryptocurrencies, but this year it started taking tough measures against crypto. First China stopped crypto mining and then in June this year banned crypto trading in the country.
There are 27 countries in the European Union. As an organization, the union can take a uniform decision, but it is difficult for 27 countries to have a uniform stand,
If talking about the stance of different countries on cryptocurrencies, then it is important to talk about El Salvador. This South American country is the first country where bitcoin has been given the status of a legal currency like the US dollar. Here President Nayib Bukulele has described bitcoin as a way to reduce poverty in the country and bring more and more people into the banking network.
Currently, bitcoin and other cryptocurrencies are out of the legal framework in India. We cannot call them illegal as they have not yet been authorized for use by any central authority in the country.
India has not yet made any rules on cryptocurrency transactions, so there are no taxes on it, India currently does not have any rules and regulations regarding cryptocurrency. Nor is it banned.