The relationship between Bitcoin and India is complicated. On the one hand, Indian citizens want to accept the emerging digital economy, but on the other, India's government is hostile against decentralized currencies.
According to a study conducted by the Indonesian firm Pundi X, about 1 in every 10 bitcoin transactions worldwide takes place on the Indian subcontinent, reported Quartz.
Pundi X’s president, Constantin Papadimitriou, revealed to Quartz that it surveyed 3,000 respondents across India, Indonesia, Japan, Russia, the UK, and the US.
Bitcoin is popular in India, but Indians are only investing in it to gain short-term profits, as there are hardly any places that they can use their digital tokens. A year ago, Bitcoin-friendly businesses such as restaurants and gift shops were popping up in metropolitan areas, but fear of the authorities forced them to cancel these payment options.
The Indian finance ministry issued multiple notices warning the population to consider the risks involved in cryptocurrency investments and not to jump on the crypto wagon. Finance minister Arun Jaitley himself told the press that the government does not consider digital currency legal tender. The ministry even compared Bitcoin to a Ponzi scheme.
The Reserve Bank of India, the Indian central bank, has also made public its distaste of digital currency, and the tax authority has started to investigate the exchanges. It has sent notices to half a million high-net-worth Indians with investments in Cryptocurrencies .
Amid all the tension, Pondi X, which is expanding its business internationally, is delaying its plans to enter the Indian market.
After its scheduled initial coin offering from January 21st to 31st, Pondi X is planning the launch of its point-of-sale terminal for cryptocurrencies in Singapore, Indonesia, Africa, and Brazil. But with such enthusiasm for cryptocurrency in India, the company is not excluding the country from its list.
Other than Bitcoin, emerging altcoins like Ripple and Ethereum are also popular among the general population of India. Koinex, one of the few exchanges offering the XRP/INR trading option, has recorded around $34 million in XRP/USD trading in the last 24 hours, as compared to a mere $3 million in Bitcoin, according to coinmarketcap.com.
The relationship between Bitcoin and India is complicated. On the one hand, Indian citizens want to accept the emerging digital economy, but on the other, India's government is hostile against decentralized currencies.
According to a study conducted by the Indonesian firm Pundi X, about 1 in every 10 bitcoin transactions worldwide takes place on the Indian subcontinent, reported Quartz.
Pundi X’s president, Constantin Papadimitriou, revealed to Quartz that it surveyed 3,000 respondents across India, Indonesia, Japan, Russia, the UK, and the US.
Bitcoin is popular in India, but Indians are only investing in it to gain short-term profits, as there are hardly any places that they can use their digital tokens. A year ago, Bitcoin-friendly businesses such as restaurants and gift shops were popping up in metropolitan areas, but fear of the authorities forced them to cancel these payment options.
The Indian finance ministry issued multiple notices warning the population to consider the risks involved in cryptocurrency investments and not to jump on the crypto wagon. Finance minister Arun Jaitley himself told the press that the government does not consider digital currency legal tender. The ministry even compared Bitcoin to a Ponzi scheme.
The Reserve Bank of India, the Indian central bank, has also made public its distaste of digital currency, and the tax authority has started to investigate the exchanges. It has sent notices to half a million high-net-worth Indians with investments in Cryptocurrencies .
Amid all the tension, Pondi X, which is expanding its business internationally, is delaying its plans to enter the Indian market.
After its scheduled initial coin offering from January 21st to 31st, Pondi X is planning the launch of its point-of-sale terminal for cryptocurrencies in Singapore, Indonesia, Africa, and Brazil. But with such enthusiasm for cryptocurrency in India, the company is not excluding the country from its list.
Other than Bitcoin, emerging altcoins like Ripple and Ethereum are also popular among the general population of India. Koinex, one of the few exchanges offering the XRP/INR trading option, has recorded around $34 million in XRP/USD trading in the last 24 hours, as compared to a mere $3 million in Bitcoin, according to coinmarketcap.com.
FAQs
Is Cryptocurrency In India Legal or Not? Cryptocurrencies as a payment medium in India are not regulated by any central authority. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. So, trading in cryptocurrency is done at investors' risk.
Which country has the most bitcoin transactions? ›
India: Over 100 million people in India own cryptocurrencies, making it the country with the most cryptocurrency owners, according to Triple-A. United States: China, Russia, Nigeria, and the EU are the next five countries with the most #BTC trading volume on exchanges.
How is 30% tax on cryptocurrency in India? ›
30% tax on Crypto in India income for FY 2022-23: 30% of ₹1 lakh = ₹30,000 (plus surcharge and cess). Selling: A 30% tax is payable on selling any crypto asset with a profit margin. Selling: A 30% crypto tax is levied when trading crypto. Exchanging: A similar 30% tax is also applied on such occasions.
How much percentage of indian population investing in cryptocurrency? ›
India currently has an estimated 115 million cryptocurrency investors on the market. This estimated number of crypto investors represents almost 15% of the Indian population aged between 18 to 60. In addition to that, 56% of investors also believe crypto to be the future of the finance.
Why is India against Bitcoin? ›
Industry experts attribute a wide number of factors to this, including apprehension among retail investors triggered by a lack of regulatory clarity, India's crypto taxation policy, and statements against the cryptocurrency sector by senior government officials.
What is the Bitcoin scandal in India? ›
The accused directors of the firms allegedly misled the public into investing in non-existent bitcoin mining machines and promised astronomical returns. The investigation, so far, has revealed that approximately 150 bank accounts were used by the suspects to collect funds from investors.
Who owns the most Bitcoin? ›
Who Owns the Most Bitcoins? Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
Who is the largest Bitcoin holder in India? ›
The individual reported to own the largest amount of Bitcoin in India is Akshay Haldipur. He is considered one of the top Bitcoin millionaires in the country, currently holding 77 BTC , which is valued at over INR 13.71 crore.
What country put all their money into Bitcoin? ›
El Salvador Adopted Bitcoin as an Official Currency; Salvadorans Mostly Shrugged. In an effort to boost financial inclusion, El Salvador made Bitcoin an official currency and offered incentives for adopting it.
Is Bitcoin taxable in India? ›
In India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. Gains made from trading cryptocurrencies are taxed at a rate of 30% (plus 4% cess) according to Section 115BBH.
If you're holding crypto, there's no immediate gain or loss, so the crypto is not taxed. Tax is only incurred when you sell the asset, and you subsequently receive either cash or units of another cryptocurrency: At this point, you have “realized” the gains, and you have a taxable event.
Is Bitcoin legal in India? ›
First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
How much Bitcoin does India own? ›
It is estimated that 97.5 million people, 7.1% of India's total population, currently own cryptocurrency.
Is it worth investing in crypto from India? ›
Yes you can invest from India but there are certain things that you will need to consider. First, it's important to understand the laws and regulations around cryptocurrencies in India. Cryptocurrencies are currently unregulated in India, but the government is considering legislation that could impact their use.
Which country has the most crypto investors? ›
Which countries have the most crypto owners? Without adjusting the PPP, the U.S. has the most crypto owners at roughly 13% of the population (or 46 million).
Who is Bitcoin controlled by? ›
Bitcoin is not controlled by any single group or person. Instead, it is governed by multiple stakeholders — including developers, miners, and users. Developers write the code that makes Bitcoin run; miners validate transactions; and users put the software to work by trading, transacting, holding, and more.
What is the government of India Bitcoin? ›
The Indian government maintains a cautious stance on cryptocurrency despite Bitcoin's surging value. At the India Today Conclave held recently, Union Finance Minister Nirmala Sitharaman highlighted the dangers associated with unregulated crypto.
Is it illegal to own Bitcoin in India? ›
First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
Is Bitcoin traceable in India? ›
All Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network.
