The future of cryptocurrencies and its legalisation in India
For the uninitiated a cryptocurrency is a decentralised form of virtual asset based on a network scattered across a huge network of computers outside the control of the central government or authorities.
Over the past decade or so, while the process has been slow, retail investors and institutions are slowly waking up to the positive aspects of cryptocurrency and are exploring ways to harness its benefits.
The latest Chainalysis’ report, ‘Global Crypto Adoption Index 2023’, ranks India first amongst 154 nations in grassroots crypto adoption or the extent to which ordinary people in a country are adopting cryptocurrency for utilization in daily life.
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View Details» With all this taking place outside the control of the Central monetary authorities, regulators were now forced to start paying closer attention to the buying, selling and mining of cryptocurrencies. The year 2013 saw The Reserve Bank of India (RBI) issue a circular, alerting users to the possible security-related risks associated with cryptocurrency.
In 2017, another circular from RBI, re-emphasised concerns regarding virtual assets or coins and in Q1 2018, a circular declared that it was illegal for banks and financial institutions to deal in virtual currencies or trade on virtual currency exchanges.
Two years later, the Supreme Court struck the circular down deeming it unconstitutional. The Government of India then decided to opt for a different
