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Future of Cryptocurrency Trading in India

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Cryptocurrency News

More recently the Government of India has started focusing on CRYPTOCURRENCY. As of now, it is not regulated in any ASSET CLASS with us here, but investors are either earning or losing money by investing in cryptocurrency. Neither the government is getting any profit from this type of business, nor is it getting any income in the form of tax.

The Eye of Cryptocurrency Trading and the Government

In 2018, the Reserve Bank of India announced that banks operating in India would not be able to transact in any cryptocurrency. Due to this announcement, the spread of cryptocurrency in India was put to a halt. And, there was skepticism among common investors who wanted to earn profits by investing in cryptocurrency.

That is, can the Reserve Bank also issue digital currency? The Reserve Bank of India (RBI) does not oppose it but wants to control its business. And also, to bring it under the tax. RBI has sent a proposal of CBDC to the government in which banknotes are mentioned, which will be amended to include currency in digital form.

When can the Reserve Bank of India (RBI) launch a digital currency? Work on the pilot project on Cryptocurrency is in progress. The expectations are of the first quarter of the new year i.e. April-June, RBI can launch digital currency as a pilot.

What is the rate of cryptocurrency?

Other major cryptocurrencies like Ethereum (Ethereum Price Today) have seen a rise of 9.32 percent and are currently trading at Rs 3,56,265.8. Binance Coin (Binance Coin Price Today) was seen trading with an increase of about 4.96 percent at Rs 48,450

Which is the cryptocurrency of India?

In India, the price of Bitcoin fell by 15 percent to Rs 40,28,000, Ethereum to Rs 3,05,114, Tether to around Rs 76, Cardano to around Rs 137.

How to buy bitcoin?

The way you can buy stocks in today’s time with the help of trading websites and apps, in the same way, you can easily buy bitcoins. Currently, the most reliable websites/apps to buy bitcoins are Wazirx, Unocoin, and Zebpay, etc.

Cryptocurrency Trading: Buying and Selling System

Governments all over the world are seriously considering digital currency based on blockchain technology, which is also called cryptocurrency. This cryptocurrency is transferred from person to person and its business cannot be tracked, thus all this business is confidential.

In English, it is also called a peer-to-peer transaction. For example, whatever conversation is done in what’s app is the end to end encrypted. No third person can know the information of that conversation. Similarly, the information of peer-to-peer transactions is also only to the receiver and giver. Not the third, the amazing thing about blockchain technology is that the information about the currency in the business is present in every computer in the world. And, no one can change it, so the possibility of fraud in this technology is very less.

Why the Governments of the world worry about Cryptocurrency Trading?

The issue of governments around the world is that due to peer-to-peer transactions. They do not get any part of the money or profits engaged in this business as tax, as well as the currency of different countries. Or, which is called a legal tender in the language of finance. There is also an increased risk of its decline in circulation. Right now, there is a government-controlled currency or currency in countries around the world. Its issuance is from the Reserve Bank of that country. But, no one has control over cryptocurrency and cryptocurrency trading.

The total number of each cryptocurrency is fixed and there is no change in this number cannot be brought. For example, the total number of bitcoins may be only 21 million. Yet, this full number is not available and a mining method is adopted to find new bitcoin which uses a lot of money, brain, and electricity. Well, that is a different topic.

Right now, we are considering that governments, tax agencies, lawmakers, and implementers all over the world are involved in the question of whether cryptocurrency is legal or illegal. If it is a legal tender, then how to regulate it? And In what way should the government use tax in the profits of the business being done by this?

Important Points of Cryptocurrency:

  • No central bank issues any country’s cryptocurrency, so the government has no control over it.
  • Cryptocurrency gives a lot of power to the customer i.e. the buyer.
  • This currency holder can take cash from Bitcoin ATM.
  • You can buy any type of goods or services.
  • Large countries of the world such as America, Canada, and England have allowed the use of cryptocurrency, especially bitcoin.
  • Countries like China and Russia misunderstand and oppose the use of cryptocurrency

Attitude of Cryptocurrency Trading and Government of India

In India, the statement of the Reserve Bank from time to time shows that the government probably does not oppose it. But, wants to control its business and bring it under the tax.

On February 5, 2021, the Reserve Bank of India has constituted an internal panel that will consider the following possibilities:

Reserve Bank’s digital currency model i.e. can the Reserve Bank also issue digital currency? If yes, then what would be the method? The work of this panel will be that if the government issues digital currency. Then, how to spread currency like bitcoin, ethereum from it? There is also the question of the trust of a government digital currency, the reason being that it will be a regulated currency and not as independent as a cryptocurrency.

Cryptocurrency Investor Mood in India

Indian investors are investing heavily, despite the presence of cryptocurrency investments and the fear of many types of impending risks. According to the information given by broker choosers, 100.7 million Indians have invested in cryptocurrency. According to a newspaper, the people of India have invested 6 trillion rupees in cryptocurrency.

Cryptocurrency regulation problem

Now, the question is if the Reserve Bank of India and the Government of India somehow regulate or bring cryptocurrency under the tax. Then, it will affect the investor, it is a little early to say now. But, as we have mentioned That the biggest feature of cryptocurrency is that no one has control over it and the investor does not have to pay any tax or surcharge on its earnings. It represents a free market economy in the true sense. Any kind of restriction on this or its regulation will have a negative effect. It will cause a loss to the investor. Apart from this, a question mark will also be there on its business in India.

Latest Cryptocurrency Bills Information

According to the latest news, the government can give a deadline to the traders, investors, or its owners of cryptocurrency to declare their cryptocurrency assets. This news is from Bloomberg. Earlier this information has come that the government is going to appoint SEBI for the task that it should bring cryptocurrency under another asset class like shares or virtual gold under one asset class.

According to the news of livemint, the government is finishing all preparations to bring a cryptocurrency bill for its regulation. The government intends that instead of suddenly banning cryptocurrency, regulating it will not threaten the capital of lakhs of investors and will not spread panic among them. Let us see what happens after the arrival of the cryptocurrency bill, the investor remains as attractive in it as it was before, or this move of the government destroys this business of billion rupees.

Written By: Abrar Mojeeb, Published writer, Blogger, Investor, and Editor.

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