Cryptocurrency Is Spreading Rapidly In India Despite RBI’s Suspicion

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Cryptocurrency Is Spreading Rapidly In India Despite RBI's Suspicion

Bitcoin and cryptocurrency have re-entered the investment market. This time its entry is fantastic, it would not be wrong to say that. The rate of one piece bitcoin was 16 lakh rupees (about 22000 dollars).

This is the highest rate in three years. In March last year, this rate was $ 5900, there are also estimates that this price can reach $ 100,000.

A cryptocurrency is a digital money that no central institution regulates. They are not like rupees or dollars, but they are used to buy goods.

Ritika, 34, who lives in Delhi, is a public relations officer, who is investing in cryptocurrency.

Four months ago, She invested 1000 rupees and bought bitcoins. She says, “I read an article on cryptocurrency, I found that very interesting. I liked that idea and I thought why don’t I do something new. My investment has reached one lakh in four months.”

Ritika is a new investor and she wants to keep the money for more than five years.

“I am not doing this for quick earnings. This investment is for my future. I am a single woman and want to invest in different portfolios.”

After reading the article on cryptocurrency, Ritika did some research and then decided to invest.

“On Twitter, Facebook and Blog you will find many people who think like you, you can talk to them, learn from them and their mistakes.”

Many business companies are also using cryptocurrency for international transactions. Mumbai-based Ruchi Pal is a construction business and has been using cryptocurrency since 2015.

They started using it because their international customers wanted to pay in cryptocurrency.

She says, “Bitcoin runs around the world. My clients in Singapore and Malaysia wanted to pay me in cryptocurrency because other mediums like Western Union are expensive and troublesome. I used international payment gateways such as Pay Pal and Perfect Money Used it, but then I started using bitcoin. “

She says that the use of cryptocurrency does not require the approval of any third party, they are easy and economical.

Will Cryptocurrency Last Longer?

Wazir X is India’s main cryptocurrency platform. In the last 6 months, 300 percent more users have signed up on this platform.

According to the company’s CEO Nischal Shetty, “In March, the Supreme Court rejected an RBI order which said that virtual or cryptocurrency cannot be used by financial services firms.”

After this, there was a lockdown and people started working from home. This gave people a lot of time to read and research about cryptocurrencies. People lost their jobs, and they started looking for new ways to make money. “

“The epidemic has attracted millions of people to crypto. International investors such as Microstrategy, Pay Scale and Pay Pal have invested a lot of money in cryptocurrency. This brought a lot of capital to this industry.”

But what has changed since 2017? In response, Shetty says, “Investors have become more mature than before. They have seen the cycle since 2017. They know that there will be ups and downs, then ups and downs. They know what can happen.”

Apart from Wazir X, there are companies like Jeb Pay, Coin DCS and Coin Switch in the market. According to Wazir X, the average age of their users is between 24 and 40 years, people who are from engineering and technology background.

According to the cryptocurrency market watchdog, on December 16, 2020, there was a trade of $ 22.4 million between four major cryptocurrencies of India. As of March 1, this figure was $ 4.5 million.

Apart from this, the main exchange has increased 500 percent since March. According to the report of Paxful of Global Cryptocurrency Exchange, India has become the largest market for bitcoin in Asia after China. Apart from this, India is also the sixth largest market in the world. America, Nigeria, China Canada and Britain are ahead of India.

According to Sumit Gupta, CEO, Coin DCX, “People who know the technology behind cryptocurrency invest in it.”

Is Cryptocurrency legally valid in India 

According to Sunny Bitcoin founder Sandeep Goenka, “Bitcoin will become the Internet of money in future.”

“The Government of India has the opportunity to recognize the occasion and come out and say that they are not illegal and bring out the tax policy related to it.”

“In other countries also new regulations are being made gradually and India can learn from them and make changes according to them. They can also talk to the people of the industry and create a framework. We are the leaders of fintech and technology. And by using it, we can even lead this new revolution. “

Being completely online, there is a possibility of its misuse and fraud. This is the biggest reason why India’s central bank opposed it and banned it in 2018, but the Supreme Court again allowed its use. “

Goenka believes that this does not mean that it has not contributed to the society. He says, “Like any other industry, there are good and bad people in cryptocurrency. But due to this, it should not be stopped from growing.”

Experts believe that one should not get carried away while investing. A person can start from 10 rupees and can learn slowly.

On 6 April 2018, RBI issued a circular prohibiting the use of cryptocurrencies for trading and ordered that banks and other financial institutions should not deal in any kind of virtual currency.

Institutions were given three months to come out of it. Earlier, the RBI had also warned its users and merchants of its danger.

This decision was challenged by the Internet and Mobile Association of India, who were representing different cryptocurrencies to the Supreme Court. The Supreme Court dismissed the decision.

RBI had taken this decision out of fear of fraud and they were waiting for the government to issue a guideline regarding it.

The Internet and Mobile Association of India believes that this decision of RBI was non-constitutional and any business has the right to use the banking system of the country.

But what will be the tax on it?

Right now there is a lot of dilemma about how the earnings from cryptocurrency will be seen. The government has not issued any guidelines related to this.

Arnav Pandya, Founder of MoneyEduschool siad “It has to look like income from other sources. It will depend on whether you are keeping it for a short time or for a long time. According to this you will get capital gains tax. have to give.”

“It will depend on the chartered accountant how he shows this income. You cannot assume that the Income Tax Department will not know about your income. They have records of all the platforms, and all have KYC. “

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