Is BTC Banned in India?by PCEX Member India's Most Trusted Crypto Trading Platform The simple answer to this question is “No”. BTC aka Bitcoin is not banned in India. It’s true that RBI has banned virtual currencies from the financial market. But, this ban has lifted by the Apex Court on 4th March 2020.
In the month of March 2018, there was a circular from the Reserve Bank of India banning virtual currencies from the financial market. The ban went into effect three months later and banks subsequently closed the accounts of crypto exchanges, forcing some of them to shut down from the regulated financial market. The matter was taken to the Supreme Court by the Internet and Mobile Association of India (IAMAI) for the lifting of the ban and seeking clarification of the circular from the Reserve Bank of India. Reserve Bank of India in its 30-page document replied that it “had not banned cryptocurrencies such as Bitcoin in India, but only ring-fenced regulated entities like banks from risks associated with the trading of such virtual instruments”.
In the documents, it was replied that RBI has only banned the banks and entities it regulates to stop providing services in cryptocurrencies such as Bitcoin to the persons dealing with such cryptocurrencies. RBI clarified that due to financial, legal, and operational risks involved in the trading of cryptocurrencies such as Bitcoin, a restriction on its trading for the entities and banks it regulates became imperative.
RBI further clarified that due to the usage of virtual currencies for illicit activities such as buying ammunition, guns, and drugs it further became obligatory on its part to stringently deal with such cryptocurrencies. Anonymity in the transactions that are done in cryptocurrencies becomes one of the major reasons for the restriction. However, contrary to RBI clarification, the government emphasized that there is no data currently available that could corroborate that there is illicit and illegal usage of cryptocurrencies that are being done though there is no denying that there is potential for such usage. Furthermore, in July 2019, the government confirmed to the Rajya Sabha that cryptocurrencies are not prohibited in the country.
Several Writ Petitions were filed in the Supreme Court that was clubbed together represented by IAMAI. The Supreme Court finally lifted the ban on 4th March 2020 after extensively hearing the arguments from both sides.
How to Buy Cryptocurrency in India?
You can easily Buy and Sell any crypto in India with your Bank Account using INR. Now the question arises on how to start with the crypto trading & on which platform? You have to choose a reliable crypto trading platform first and then sign up on that platform. Complete your KYC, once the exchange will approve it then you can add money using your bank account instantly.
Created on May 6th 2021 07:10. Viewed 45 times.
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