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What are the regulations and restrictions for buying, selling, and trading cryptocurrencies in India?

Curious about cryptocurrency trading in India

What are the regulations and restrictions for buying, selling, and trading cryptocurrencies in India?

In India, there is currently no specific law governing the buying, selling, or trading of cryptocurrencies. However, the Reserve Bank of India (RBI) has issued multiple circulars warning banks and other regulated financial entities against dealing with cryptocurrencyrelated businesses, stating that virtual currencies are not legal tender in India.

In March 2020, the Supreme Court of India struck down a previous RBI circular that had directed banks to stop providing services to individuals or businesses dealing with cryptocurrencies. This ruling was seen as a positive development for the cryptocurrency industry in India.

However, the government has proposed a bill called the "Cryptocurrency and Regulation of Official Digital Currency Bill" that seeks to ban all private cryptocurrencies in India and establish a framework for a central bank digital currency (CBDC) issued by the RBI. The bill has not yet been passed into law, but if it is, it could have significant implications for the cryptocurrency industry in India.

In addition to this, individuals trading cryptocurrencies are subject to taxation laws in India, and must pay taxes on any profits made from cryptocurrency trading as capital gains.

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