Written by Roshan Aslam
Interest in investing in cryptocurrencies has been widespread in India for some time. While the Reserve Bank of India (RBI) and many experts, like other authorities around the world, have raised questions about the safety and legality of these virtual digital assets (VDAs), Indians We continue to have a strong interest in owning and trading popular cryptocurrencies such as: such as Bitcoin and Ethereum.
According to the latest estimates, 15-20 million investors in India own cryptocurrencies, with a combined holding of around Rs 40,000,000,000. Although buying and selling cryptocurrencies is not illegal in India, there is a lack of legal framework related to these digital assets, and as announced by the Indian government at the G20 summit to be held in New Delhi in 2023, the global We are working to establish the buying and selling of cryptocurrencies. Cooperation focused on the formulation of regulatory directives.
Currently, India imposes a 30% tax on crypto capital gains, but these assets cannot be used directly as a payment method for legal transactions in the country. However, there is currently a certain scope for the use of cryptocurrencies for online shopping in India, but only for a limited number of companies.
Current status of virtual currency in India
The biggest challenge faced by cryptocurrencies in India is that they are not controlled by any nodal authority as a payment medium. There is no legal framework for these assets, and no established principles for resolving disagreements regarding cryptocurrencies.
The RBI has already made its position clear, saying that trading in these digital assets is done at the investors' own risk. However, recent developments suggest that the Indian government is aiming to establish an agreeable legal framework for the creation of an RBI-issued virtual currency.
The Cryptocurrency and Official Digital Currency Regulation Bill 2021 addressed this in detail, similar to India's response at the G20 summit last year.
Use of cryptocurrencies in online shopping
While global business giants such as Microsoft, AT&T, Shopify, and Tesla are known to have accepted cryptocurrencies in the past, not all of them currently accept these digital assets as a payment method.
In the case of India, businesses do not currently accept cryptocurrencies as a payment medium, but several fintech companies specializing in this space are offering gift cards and They offer a workaround by allowing you to purchase vouchers. EC sites, food delivery services, etc.
However, this is not standard practice among users, and it is widely known that users do not utilize these services. The absence of established regulations surrounding cryptocurrencies appears to be a major factor behind this decision by Indian consumers, although the centralization of cryptocurrencies by governing bodies like the RBI in the country Subject to change, given approach and institutionalization.
future scope
The future of digital assets in India is far from certain. The Indian government was scheduled to introduce virtual currency regulations during last year's winter parliament. At the time, National Finance Minister Pankaj Chaudhary, responding to the Ministry of Finance's order, made it clear that global cooperation is needed to establish regulations around virtual currencies.
This sentiment was reflected again in India's stance at the G20 summit, but since then no solid steps have been taken to allow consumers to use digital assets as a direct payment method for online shopping in India.
However, the Indian public is positive about including digital assets as a payment method in the future, which points to India's potential to move towards a more inclusive payment ecosystem in the future. For now, considering developments, this remains a neutral territory.
(The author is Co-founder and CEO of GoSats)
Disclaimer: Crypto products and NFTs are unregulated and can be extremely risky. Regulatory remedies may not be available for losses from such transactions. Cryptocurrencies are not legal tender and are therefore subject to market risks. Readers are advised to seek professional advice and carefully read the offer document together with relevant key literature on the subject before making any type of investment. Cryptocurrency market predictions are speculative and investments are made at the reader's sole expense and risk.
