Question 1

Is crypto regulated in India?

Accepted Answer

In 2021, the government took a significant stride in regulating cryptocurrencies with the introduction of the Cryptocurrencies Bill. The primary objective of this legislation is to create a favorable framework that facilitates the development of an official digital currency issued by the Reserve Bank of India (RBI). This proposed law reflects the government's efforts to establish a structured approach to the evolving crypto landscape in India.

Question 2

Is crypto taxable in India?

Accepted Answer

Yes, profits derived from cryptocurrencies are taxable in India. The government's position regarding cryptocurrencies and other virtual digital assets (VDAs) was explicitly addressed in the 2022 Budget, solidifying their classification as taxable assets. Therefore, cryptocurrency transactions are subject to taxation as per the regulations set forth by the Indian authorities.

Question 3

Is cryptocurrency legal tender in India?

Accepted Answer

Cryptocurrency is not recognized as legal tender in India. However, it is important to note that investing in and generating profits from cryptocurrencies is not deemed illegal. However, due to the evolving nature of crypto regulations and the potential complexities surrounding taxation and legal implications, it is advisable to consult with a qualified professional or seek legal and financial advice before engaging in cryptocurrency-related activities.

Mayank Bubna

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The State of Crypto Regulation in India