1.
Government’s Stance on Crypto
1. India does not consider cryptocurrency legal tender – It is not an official currency
like the Rupee.
2. The RBI has concerns – The Reserve Bank of India (RBI) sees crypto as a threat to
financial stability.
3. Crypto is not banned but unregulated – There is no clear legal framework yet.
4. India favors a Central Bank Digital Currency (CBDC) – The Digital Rupee (e₹)
was launched by the RBI in 2022.
5. Government wants global collaboration – India believes crypto regulation should
be a global effort.
2. Cryptocurrency Regulations in India
6. RBI banned banks from dealing with crypto in 2018 – Later overturned by the
Supreme Court in 2020.
7. The Crypto Bill is pending – The government has not yet passed a comprehensive
law.
8. Crypto is classified as a digital asset, not currency – It is treated like stocks or
commodities.
9. SEBI may regulate crypto trading – If legalized, Securities and Exchange Board
of India (SEBI) could oversee exchanges.
10. The government has warned about risks – Crypto can be used for fraud, money
laundering, and tax evasion.
3. Crypto Taxation in India
11. 30% tax on crypto gains – Introduced in the 2022 Union Budget.
12. 1% TDS on crypto transactions above ₹50,000 – Aimed at tracking transactions.
13. No deduction allowed for losses – Losses from crypto cannot offset gains.
14. Gifting crypto is taxed – The recipient must pay tax based on fair market value.
15. Mining income is taxable – Any crypto earned through mining is subject to taxation.
4. Crypto Exchanges in India
16. Major exchanges include WazirX, CoinDCX, and ZebPay – These platforms
facilitate crypto trading.
17. Banks hesitate to support crypto exchanges – Many banks restrict transactions to
and from crypto platforms.
18. P2P (Peer-to-Peer) trading is common – Some traders use direct transactions to
bypass banking restrictions.
19. International exchanges are still accessible – Platforms like Binance and KuCoin
are used by Indian traders.
20. Crypto exchange regulations may tighten – Authorities may require stricter KYC
and compliance rules.
5. Risks and Challenges
21. Crypto is highly volatile – Prices fluctuate dramatically.
22. Scams and frauds are common – Ponzi schemes and rug pulls have impacted Indian
investors.
23. RBI sees crypto as a financial risk – It worries about destabilizing the banking
system.
24. Lack of investor protection – No refund or recovery options in case of hacks.
25. Fear of future bans – Uncertainty affects investor confidence.
6. Future of Crypto in India
26. A regulatory framework is expected – The government is studying global models.
27. CBDC may replace private cryptos – The Digital Rupee could reduce crypto
demand.
28. G20 discussions influence policy – India is working with global leaders on
regulation.
29. More institutional participation is likely – If regulated, banks and fintech firms may
enter the space.
30. Crypto adoption depends on clarity – A clear legal framework will determine its
future in India.
