Cryptocurrency is a form of virtual currency that exist digitally and has no central issuing or regulatory body. The technology that empowers this digital currency is “Blockchain”- a decentralized technology that is spread across many computers that manage the record.
Any changes that happen on one system is visible to another connected computers on real time basis and the confidentiality of data is maintained. The transactions in these cryptocurrencies are free from interference from any banking systems and its peer-to-peer transaction system enables its users to transfer money anywhere in the world.
The cryptocurrency market in India has grown significantly in India and even people having limited knowledge over this subject are willing to invest at least a small portion in these avenues because of the FOMO (Fear of missing out) effect or to make a diversified savings portfolio for future.
Before rushing out to the question that How to buy cryptocurrency in India 2022?
It is important to understand the legitimacy aspect of cryptocurrency in India, whether trade in these digital assets is legal or not and if it is? Then is it taxable?
Is cryptocurrency legal in India 2022 or is bitcoin legal in India 2022
Well to answer to your question directly please note that in 2018, The Central Bank of India (RBI) passed a circular banning the regulated financial institutions from rendering services to the businesses dealing in the exchange or trade of cryptocurrencies, but later the circular was challenged in the Hon’ble Supreme Court by the crypto trading entities and the circular was struck down after the deliberations on the subject matter.
The Hon’ble Supreme Court analysed the role of the RBI as a central bank to manage currency, money supply and interest rates and recognized that the maintenance of price stability as an objective of RBI. The Hon’ble Supreme Court noted that cryptocurrency is capable of being accepted as valid payment for purchase of goods and services, and the payment systems can be regulated by the RBI.
Hence the ban on the trade of cryptocurrencies is lifted and one can buy or deal in cryptocurrencies in India as of now, however the Hon’ble Government of India is expected to pass a bill to regulate the trade in cryptocurrencies in the monsoon session known as “The Cryptocurrency and regulation of official digital currency Bill”, until the same is passed the cryptocurrency is outside the purview of any taxation structure.
It is important for the government to monitor the crypto transactions through a well passed law as the entire transaction in these cryptocurrencies is confidential and the details of the parties involved in these transactions is not traceable, therefore since the crypto transactions is not traceable nor are taxable presently in India there are chances that this medium could be used for some illegit purposes such as money laundering etc. therefore the Honorable government of India is planning to bring a law to regulate these activities.
Read: Benefits of investments in Bitcoins today
Benefits of cryptocurrency on an economy
The global cryptocurrency market size was valued at $1.49 Bn in 2020 and is anticipated to reach $4.94 Bn by 2030, i.e. growing with a CAGR of 12.8% from 2020 to 2030 according to a study.
Countries like China are finding ways to use the Bitcoin backed technology i.e. block-chain to reduce frauds and foster transparency in its financial sector, therefore moves like such fosters the growth prospects of the technology in future.
Cryptocurrencies like Bitcoin, Etherium, Dogecoin, Shiba Inu etc have become increasingly popular amongst the crypto traders owing to its continuous presence in the crypto news or because of its mention over the social media platforms by some prominent personalities.
The numbers of the crypto traders in India have recently increased since March’20 when the ban imposed by RBI was lifted. According to a news reporting by Indian daily financial newspaper “notwithstanding the legal status of the cryptocurrencies and huge price volatility,
India has highest number of crypto owners in the world i.e. 10.7 crore” followed by US (2.74 Crore), Russia (1.74 Crore) &Nigera (1.30 Crore) according to a study conducted by a comparison platform Brokerchooser.
How to Open a Crypto Trading Account on WazirX in 2022?
The cryptocurrency market is flourishing worldwide and there even countries that have made bitcoin as their legal tender money such as El Salvador, it believes that it will give many citizens an access to banking services for the first time. I believe this is just a beginning and there might be many more additions of countries to this list on the go.
So, if you wish to open a trading account on WazirX account simply follow below steps:
- Simply download the WazirX application or visit the WazirX website. Then, hit the sign-up button.
- Simply enter your e-mail address (which you use) and a password.
- Simply click on the account activation link in the e-mail.
- Simply click on the terms and conditions of the checkbox, but read it once before checking.
- Then press the Sign Up button.
- Then you will receive a verification email on your email ID, after receiving it simply verify your email account.
- Then you will have to secure your account by using 2 Factor Authentication (2FA), this step is only to secure your account from fraudsters, here you can protect your account by signing into google authenticator or you can use your mobile no. to recover your account details.
- After the (2FA) is done you will have to complete the KYC norms, this is necessary because it involves transactions in rupees- such as INR deposit and withdrawals etc.
- In the KYC section you will have to provide details of your government issued ID proof such as PAN Card, Aadhar Card, and its image in JPG or PNG format.
- Once your KYC details are verified you will have to enter your country details and then you are ready to go and trade over WazirX platform.
For to learn how to trade on WazirX platform: please see this video or click on this link.
Note: Please note we are not financial consultants and do not advise you to take any financial decision merely based on our published article, please form any decision based on your personal research work as financial markets are subject to presence of risks.
