Cryptocurrency Ban in India 2021: Is Cryptocurrency Banned in India? Check Why is Cryptocurrency Banned in India?

by Kaveri S | Updated Feb 01, 2021 16:33 IST

Cryptocurrency Ban in India 2021: Is Cryptocurrency Banned in India? Check Why is Cryptocurrency Banned in India?

Cryptocurrency ban in India 2021: Is cryptocurrency banned in India? What is Cryptocurrency and what is the reason for Cryptocurrency ban in India? How long has it been since Cryptocurrency came into existence? Why Cryptocurrency is banned in India? What is the alternative? What was the announcement about the Cryptocurrency given by the government? Read this page to find out more about cryptocurrency ban in India 2021: is cryptocurrency banned in India, why cryptocurrency is banned in India cryptocurrency ban in india 2021: is cryptocurrency banned in India, why cryptocurrency is banned in India.

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What is Cryptocurrency?

Cryptocurrency is a digital medium of exchange, also called Crypto, and the transactions of the cryptocurrencies are sent through cryptocurrency wallet. Cryptocurrency uses a technology called Blockchain. Cryptocurrencies can be exchanged with products, services and other currencies as well. Cryptocurrency has existed since it was first conceived in 1983. Bitcoins is a cryptocurrency invented in 2008 and was used since 2009 when it was released as open source software. These cryptocurrencies became popular in the digital lifestyle and people have adapted to the options of cryptocurrencies. In India, cryptocurrencies were hugely used in the years 2016 and 2017 post demonetization.

Is Cryptocurrency Banned In India?

Cryptocurrency was earlier banned in India in 2018.

After Demonetization of 500 and 1000 rupees currency notes in India, in 2016, there was an increase in the use of cryptocurrencies in India, which also increased the risks of frauds and the increase in chances of money laundering. This was taken into account by the government and on 5th April, 2018, the government declared a ban on the cryptocurrencies which was officially implemented on 6th April, 2018.

Ban On Cryptocurrency was lifted in 2020

After this ban of cryptocurrency in 2018, there were change of opinions and legal requests and opinions put forward, in the courts on the cryptocurrency’s ban.

This ban was finally lifted in March 2020.

Will Cryptocurrency Be Banned In India?

During the Budget session of 2021 which started on 29th January, 2021, there were new bills listed one of which was for the cryptocurrency. There were 20 new bills introduced in the Budget session so far and one of those bills is about the Cryptocurrencies in India. The Finance Minister, Ms. Nirmala Sitharaman announced the government’s introduction of the new bill “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” which stated these important points:

Prohibit all private cryptocurrencies.
Create a facilitative framework for creation of the official framework of the official digital currency issued by the RBI.

Is Cryptocurrency Legal In India?

Cryptocurrency is a complicated comprehension when it comes to government taxation, prevention of frauds and scams related to money and money laundering. The government of India had already put a ban on cryptocurrencies which was lifted by the court and recently, from the budget 2021 session, we know that things might change again as private cryptocurrencies are to be banned and India’s own cryptocurrencies are to be introduced. Everything will be confirmed by the end of this budget 2021 session which will be on 13th February, 2021.

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