In the current scenario, everyone talks about digital currency, Blockchain technology, cryptography but too many people don’t aware of this. We have educated them, on what is cryptocurrency? How it will work in the future? What is Blockchain technology? Cryptocurrency In India Legal or illegal It’s a future way of exchange as well as Investment class assets. The cryptocurrency is known for its safest mode of transaction, with no requirement of any third party to complete this transaction. It’s also removed the centralized part, that’s why no one can control the value of crypto.
On 29 Nov, the Indian Government has been listed the cryptocurrency regulation bill in Winter Parliament Session. The Government is planning to introduce’ The crypto and Regulation of official digital currency bill, 2021. The bill focused on creating a framework for the creation of the digital currency to be issued by the Reserve Bank of India (RBI), and the Government also proposed a bill to prohibit all private cryptocurrencies in India. The private crypto arent based on public blockchain or public smart contract. Bitcoin, Ethereum, Cardano, Solana are based on public smart contracts. The Lok sabha website notification mention, It allows for a certain exception to promote the underlying crypto technology and its uses. they don’t use the word ‘ban,’ it talks about three main aspects: the creation of an official digital currency, prohibition of private currencies, and exception to the underlying technology on which cryptocurrencies are based upon.
The Government is not clear on two points, one that wants to ban cryptocurrency and another one that wants to regulate it.
Cryptocurrency in India, legal or illegal?
Cryptocurrency is legal in India since March 2020, Supreme court gave the judgment to the Crypto Exchange sides. So anyone’s interested in Crypto-assets to do buy or sell it, let’s start trading in the new assets class. Last some reports say cryptocurrency may not face a complete banned in India and The Center has planned to set up a panel to regulate it.
In the current scenario, the Indian government does not have any policy and frameworks to regulate cryptocurrencies. But Government flagged the positive approach towards the distribution & ledgers technology and suggested various applications in financial firms as well as banking sectors.
Cryptocurrency is an unregulated asset class no one can control it, no taxes collection. The Crypto investors don’t know how much taxes are paid on it? No one can regulate the Cryptocurrency market but current scenario some government bodies look into Cryptocurrency and studies.
Government of India working on Cryptocurrency and Blockchain technology and developing digital currency. Because the Indian Government does not want to leave behind in the new-age technology revolution. The RBI governor is talking in support of Cryptocurrency, he said, “ The time has come to leverage new technologies and it’s an application and strengthening the digital infrastructure in our country.
After the regulation crypto asset class will be one of the major tax pay investment segments. Because the crypto transaction is done in billions of dollars, only WazirX done exchange cross the 5 billion transactions in cryptocurrency.
Investment in Cryptocurrency
In 2013 bitcoin was the first cryptocurrency developed by a random person, Satoshi Nakamoto Today, thousands of currencies trade in crypto exchanges. It is a high-risk investment segment, but those who want to invest in crypto do some simple steps. Open crypto wallet and account at any crypto exchange. Before investing in any crypto do some research on coins, read the white paper, find where it is used? its Market cap. In 2020, the crypto total market cap cross 1 trillion, and institutional investors also invested in Bitcoin, Ethereum, Ripple. We have to add some value-added products and services, it will be helpful for Crypto Exchange in day-to-day life.
Understanding of Cryptocurrency
Cryptocurrency is new age technology so it’s quite difficult to understand for the regular trader. But let’s see from per assets perspective it is as simple as other assets. Everyone is concerned about the safety and valuation of coins, before you invest in any cryptocurrencies consider market cap, utility, and read the White paper of coins.
The Indian investors are also attracted to the crypto, In March 2020 WazirX cross the 5 million client mark. So you can imagine how many investors are investing in Crypto.
The Indian Crypto Exchange launched its learning platform to new Crypto traders. WazirX has a ‘Wazirx Crypto Worriers’ platform to build the Indian Crypto community. They spread knowledge and awareness through the WazirX army.
Development program for crypto
Crypto is new edge technology but it has some drawbacks, high energy consumption is one of the major issues of cryptocurrency. The high electric power to be used for mining crypto, the Bitcoin, Ethereum, Litecoin consumed 707kwh, 62.5 kWh, and 18.52kwh respectively. We have to reduce energy consumption and use renewable energy sources for crypto mining. Ethereum and bitcoin miners now consumed 113 TWh and 44 TWh per year, but Ethereum tries to switch from POW (Proof of work) to POS (Proof of stake). It’s more efficient than older technology and only used the 35kwh energy per transaction.
Bitcoin is regulated in different foreign countries including France, Canada, European countries. But it has major issues with power consumption. Elon Musk reveals no longer accepts bitcoin as a payment mode to buy a Tesla car. After that statement bitcoin hit $25000, slid down 11% from its high of $ 40000.
The Bitcoin council has been improving Crypto sustainability using renewable energy resources for bitcoin mining. El Salvador also confirmed that it mines the crypto using geothermal energy from its volcano. It is a very cheap 100% renewable and 100% clean energy source. El Salvador world-first country to adopt a bitcoin as legal tender.
Crypto in India FAQ