Is bitcoin illegal in India

[salixo]

Hello folk, I am a bit confused if cryptos are legal or illegal in India.
As bank has stopped providing services to crypto-exchanges. Is it illegal to hold bitcoin in India?https://1drv.ms/u/s!AvSFyKbrEp-IgQY6DABDwf9gqmgq

[abelmon66]

Yes it is true that crypto is illegal in India, but it does not make crypto users in India to surrender, they use foreign markets to make transactions.

[CryptoBry]

I think the Indian government has not yet decided on finality on what to do with the burgeoning cryptocurrency movement whether it will allow its entrance into the Indian market in a regulated environment or will it shun away just like what the China did last year. That remains to be seen. Now, in the meantime banks are afraid to deal with businesses involved with cryptocurrency all because they are not sure what will happen next they are just avoiding any complications that may arise if the government will declare the whole thing to be illegal. Hope the government will see the positive sides of cryptocurrency and not just what they hear and see on the media.

[bitcoindian]

Still, there is no conclusion from the Supreme Court and the given a circular and again hearing will in the month of July. Till now, the government is given notice to banks by not encouraging people to buy the cryptocurrency, previously Arun Jately informed in a statement, cryptocurrency is not legal  India but people who trade cryptocurrency should pay taxes on it.

[maarx]

 There is no proper announcements from the government side. In India neither it is legal nor it is banned that is not illegal. Just RBI warns the bank just close the accounts of the people who done transactions with cryptocurrency. But a serious discussion is going on about this cryptocurrency acceptence. But people in india use bitcoin and there are so many local exchanges now running and the transactions are going on. Lets wait and see what is going to happen whether it is announced as legal or not.

[Theb]

They have a really complicated situation right now. Because the Government of India has officially stated that cryptocurrencies are not recognized legal tender in the country in short you cannot directly used cryptocurrencies as a form of payment in buying products, yet cryptocurrencies are allowed to be earned, traded, and mined. Lately the Reserve Bank of India, which is their central bank issued a note where they are notified banks not to open accounts related to cryptocurrencies as it can "potentially be used for criminal activities".

As to how things are going I think the legislative assembly of India is having a hard time on creating a law that will ban cryptocurrencies that is why they are acting to creating memorandums with the RBI. Which I think means some politicians are opposing the creations of a law which will ban cryptocurrencies in the country.

[St4yInTh3D4rk]

Yes it is true that crypto is illegal in India, but it does not make crypto users in India to surrender, they use foreign markets to make transactions.

No,crypto is not yet illegal in India still anyone can use crypto currencies in India but as from the government statement it is not legal tender which doesn't mean illegal.But we may get conclusion soon for this issue until that you can hold your bitcoin if you are from India.Even if they made illegal users can use foreign exchanges for trading but it is illegal activity then you may face legal actions if you get caught after it was made illegal.

[avikz]

They have a really complicated situation right now. Because the Government of India has officially stated that cryptocurrencies are not recognized legal tender in the country in short you cannot directly used cryptocurrencies as a form of payment in buying products, yet cryptocurrencies are allowed to be earned, traded, and mined. Lately the Reserve Bank of India, which is their central bank issued a note where they are notified banks not to open accounts related to cryptocurrencies as it can "potentially be used for criminal activities".

As to how things are going I think the legislative assembly of India is having a hard time on creating a law that will ban cryptocurrencies that is why they are acting to creating memorandums with the RBI. Which I think means some politicians are opposing the creations of a law which will ban cryptocurrencies in the country.

Rightly Said! Most of the information are correctly given here. However, I doubt any of the politicians are opposing the ban. Only 41% of Indian politicians are educated, so only a handful of the Indian politicians have the brain power to understand this new technology. Even a Member of parliament Kirit Somaiya said bitcoin is a ponzi scheme. So it shows their level of awareness about cryptocurrency and the related technology.

I believe the main reason why Indian government has not yet banned crypto currency is that, they are not able to understand how to control it from being circulated. They are also trying to calculate whether they will be loosing on taxes if they ban it or not. So they have formed a committee with some economists and their report on cryptocurrency is still awaited. Probably government will take some action after the report is published. In the meantime, they are just trying to discourage the business community by issuing circulars through RBI.

So to answer Op's question, Bitcoin and crypto currencies are not yet banned in India. But you can't use it as a legal means of payment for any goods or services, neither you can exchange it using your bank account. But there are ways to counter that rule as well through p2p exchange. Do a little research and  you will know it.

[Anees1122]

Bitcoin’s roaring success towards the end of 2017 proved irresistible to Indian investors, despite rumors that India’s central bank could put a stop to the token. At the moment Bitcoin has not been outlawed or banned, but India’s major finance institutions do not recognize it as legal tender.

[prestaknight]

Crypto isn't illegal in India per se, but exchanging for fiat in the normal banking system seems to be.

[supermine]

Hello folk, I am a bit confused if cryptos are legal or illegal in India.
As bank has stopped providing services to crypto-exchanges. Is it illegal to hold bitcoin in India?

In India the crypto currencies were neither legal nor illegal,so you can now use it, trade and and hold it if you want but the reserve bank of India warned all the banks from India to stop dealing with the crypto related services,but still many banks are providing services to crypto exchanges so we need to wait for the official announcement from the governments.
But someone filed case against this issue in supreme court of India so the decision may take time and also the government will in the favour of people if more people support crypto currencies.And also they opened an online petition against the reserve bank of India if you want the bitcoin to stay in India then you also show your support.

And what link you have provided?I can only see a picture of beach in that.

[botany]

Hello folk, I am a bit confused if cryptos are legal or illegal in India.
As bank has stopped providing services to crypto-exchanges. Is it illegal to hold bitcoin in India?

It is not illegal, but banks have been asked not to provide services to cryptoexchanges. Theoretically, you can still buy bitcoins using cash. It is not a crime. And it definitely is not illegal to hold bitcoins.
You must understand that the cutting of banking links to exchanges has come from the central bank (RBI). The government has not come out with its stance on Bitcoin yet.

[zhekinsp]

Hello folk, I am a bit confused if cryptos are legal or illegal in India.
As bank has stopped providing services to crypto-exchanges. Is it illegal to hold bitcoin in India?

It is not illegal, but banks have been asked not to provide services to cryptoexchanges. Theoretically, you can still buy bitcoins using cash. It is not a crime. And it definitely is not illegal to hold bitcoins.
You must understand that the cutting of banking links to exchanges has come from the central bank (RBI). The government has not come out with its stance on Bitcoin yet.

Yes,RBI has the power to only restrict the banks from involving crypto currencies so we have other options as well to buy and sell the crypto currencies only we need conclusion from the governments for illegal or not.

[Sandeep24]

If you can pay proper tax on your income than it would be legal in India because RBI guideline is not clear on crypocurrency.

[zhekinsp]

If you can pay proper tax on your income than it would be legal in India because RBI guideline is not clear on crypocurrency.

Yes,this is one of the reason that most of the countries are against the crypto currencies.And I have read somewhere that India is one of the mostly corrupted country with black money so RBI thinks that people can use bitcoin to launder their money.But if we all can pay our taxes proprly then the condition may change too.

[gantez]

If you can pay proper tax on your income than it would be legal in India because RBI guideline is not clear on crypocurrency.

It is not in the hands of the citizens to pay tax from  bitcoin profit but whether the India government has made regulations to collect such but if that isn't available in the first place, it means the government is not looking on that. But, if it is even banned, I don't think that will totally stop it, it can only make the transaction difficult.

[Whibu]

For now India is prohibiting or assuming crypto is illegal, but I hope it will not happen forever, and for the people of India there is still a solution to use foreign markets.

[marielbeckham]

It is rather not banned in this country.

[Eleven86]

Bitcoin is neither legal nor banned in India. Just RBI announced that close the account of poeple who done transaction using bitcoin. But many people in india now using bitcoin as their main income. Many local exchanges now opened and trade the bitcoin. To buy and sell many trading exchanges now opened in India. But there is a serious discussion is going on about launch of new coin.

[DeadCoin]

Till now bitcoin is legal in India. RBI just announced the close the account of the people who deals with crytocurrencies . And they give some time to do this process. But still people in India using bitcoin as their main income. It is not completely banned just  banks to close the transaction only. Indian government has planned to launch its own cryptocurrency. So serious discussion is going on about legalization of crypto in India.This process takes some time not done immediately. So in future bitcoin will be legal in india.