Is Bitcoin Legal in India?

It was the period 2008-09 when a buzz was generated, due to the introduction of an innovative technology named ‘Bitcoin’. This was based on a decentralized network, which introduced the world's first known cryptocurrency. This attracted a lot of both positive and negative popularity, owing to the ambiguous and obfuscated structure(at least for the common people). Several criticisms were voiced, for the anonymous structure of the entire coin mining and trading. However, the anonymity became the new ‘normal’ and people started getting involved in the process, both as traders and miners, which contributed to the exponential growth of the cryptocurrency, which later on became the flag bearer of financial freedom in the world. 

Indian Exchange and Crypto Industry approach to legalization of bitcoin

This rise was followed by a different set of approaches adopted by countries across the globe. The entire world can be divided into categories. depending up on the regulations made, specifically concerned with blockchain technology and cryptocurrency. These categories involve nations who created a conducive environment for crypto assets, those who refused to accept crypto assets and some countries who are still under the research phase in order to form a substantial strategy for the same.

India, owing to the policies drafted and regulations adopted, falls under the category of nations who have been quite resistive towards the revolutionary technology. Be it the ban introduced by RBI in 2018 that restricted the financial institutions in dealing with the crypto assets or not including crypto companies under the regulatory sandbox program that nonetheless had other FinTech innovations, the central agencies have time and again discouraged the investors from venturing into the sector of these virtual currencies. Adding to this, the report from SC Garg’s committee showcased the crypto assets in a negative light as well.

However, the merits of cryptocurrency and the number of issues it will be solving, once mainstreamed, didn’t fail in luring the central government as well. The government along with traditional financial institutions are looking forward to introducing a state-issued cryptocurrency. This has nevertheless highlighted the change in approach of the central agencies. Adding to it, the Ministry of electronics and other bodies have jointly asked for recommendations for creating a conducive environment for crypto assets, and join the global league of nations who have, by some or the other means, adopted cryptocurrency. 

Buying and selling of bitcoin

Though there is still no final word from the bodies, the act of buying/selling or trading crypto assets (Bitcoin being the most famous one in them) remains plausible. Talking about the ban imposed by RBI in 2018, it only restricted the financial institutions in dealing with the virtual currencies such as bitcoin and didn’t put any restriction on the act of trading in bitcoins and other altcoins, That was the suspicious movement, Is bitcoin legal in India. The crypto exchange centres were not affected by the ban, rather they were functioning properly. The ban targeted the emotions of the residents, thereby making them resistive towards the same. 

Adding to this, the Supreme Court judgement in 2020 repealed the ban and thereof confirmed that bitcoins and altcoins are completely legal in India. This judgement was followed by a huge spike in the number of traders and miners that displayed the potential of bitcoin and other cryptocurrencies to become the unified medium of exchange, on a global scale.

Since the apex court has allowed the trading of crypto assets, there have been several international, national and local crypto exchanges that have started functioning in the financial market. While the international ones include some prominent names such as Binance and Kraken, the Indian crypto exchange centres include BuyUcoin, WazirX, UnoCoin and so on. These crypto exchanges have gained public trust and are known for the efficient and trustworthy procedures that are adopted while facilitating the customers to deal with one of the most revolutionary yet underrated innovations. 

In order to buy bitcoin in India, a rough sketch (for the steps) is mentioned below-

Step 1 - Sign Up to a Bitcoin Exchange

Step 2 - Create your account or sign up with Google. 

Step 3 - Complete Your KYC to get Free Bitcoins

Step 4 - Go to OTC desk / Crypto Exchange ( You can add money with MobiKwik or create a virtual bank account)

Step 5 - Once you have started trading, these crypto exchange platforms will also reward you with several attractive incentives including some free coins as well. Adding to this, they have an affiliate scheme, where you can earn commissions based on the number of people creating their account with the respective platforms through your referral link.

The above mentioned process is completely legal and as of now, there is no clause either by any state or national government/judicial system which restricts the exchange of bitcoins and altcoins. Considering the potential and government’s plan to introduce a centralized cryptocurrency, it can be safely stated that this is the future of the global financial market.