Cryptocurrencies are gaining acceptance in India in recent years. This is despite the fact that the regulatory framework on cryptocurrencies is still hazy in India.
Bitcoin, a popular cryptocurrency was trading at three months high in Indian exchanges on 25th August 2021. It is estimated that there are nearly 1.5 crore investors doing trading in cryptocurrencies in India. There are also over 300 startups in India working in the domain of cryptocurrencies. The amount invested in cryptocurrencies in India rose from USD 900 million to over USD 6 billion in less than a year.
The surge of cryptocurrencies in India
The recent boom of cryptocurrencies is attributed to the depreciation of traditional assets worldwide following the Covid-19 pandemic. In India, there seems to be a mindset change as younger people and women are also opting for cryptocurrencies as an investment option. Cryptocurrencies are now popular than gold for investors in India.
Chronology of events
2012-2017 is the period in which the cryptocurrencies market developed globally. During this period several cryptocurrency exchanges were formed in India such as Zebpay, Unocoin, Koinex, Pocket Bits, and Wazir X. Apart from Bitcoin, Indian investors are opting for Ethereum, Binance, Tron, Doge, etc.
Indian central bank made the first statement on cryptocurrency in December 2013. It said that virtual currencies are not regulated by central banks and there is no underlying asset with it.
In October 2017 Public Interest Litigations were submitted to the Supreme Court of India asking for the ban and regulation of cryptocurrencies in India.
In April 2018, the Reserve Bank of India stopped all Indian bank’s access to cryptocurrencies. But in March 2020 Supreme Court of India declared that cryptocurrencies are not illegal.
The government of India is yet to formulate a clear policy on cryptocurrencies and the uncertainty continues.