Bitcoin ban in India made many cryptocurrency enthusiasts nervous and frightened. People thought they were going to lose all their cryptocurrency investments and will no longer be able to buy, sell or trade cryptocurrency anymore.
Still, there is an increasing population in India who are surrounded by the misconception about bitcoin ban and are frightened to get their hands on bitcoin or other cryptocurrencies.
Most of the people didn’t really know what happened and what will the outcome be. Beginners to the cryptocurrency world who know very less about bitcoin ban in India are giving up hopes already on being able to buy bitcoin or another cryptocurrency.
In this article, I’ll give you a brief summary of what bitcoin ban in India means and whether you can buy it or not. You will know whether possessing bitcoin is legal or illegal and also I will tell you whether trading bitcoin a crime or not.
Bitcoin ban in India. How it all began?
It all started on April 05. RBI, The reserve bank of India made an announcement to the banks, that they should stop providing support within three months to the websites or exchanges who sell virtual or digital currency such as bitcoin, Ethereum, Litecoin etc to name a few.
It was clear that the banks should brake relationships and ties with these websites and no longer should they provide a gateway for Indian citizens to be able to use their debit/credit cards or bank accounts to be able to buy cryptocurrencies.
This basically means, if there is no support from the banks to the cryptocurrency websites and exchanges, then you can’t be able to buy cryptocurrency using any Indian bank account.
And thus, all the banks in India withdrew their support from cryptocurrency websites and exchanges present in India. Leaving the websites and exchanges with no alternative way to sell cryptocurrency after the bitcoin ban in India.
This set a fire in Cryptocurrency traders and people who possessed bitcoin. Most of them were scared and they had to sell their cryptocurrency out of fear within three months thinking they might go into a huge loss.
From this crisis, the cryptocurrency enthusiasts began to recognize the entire subject wrong. So let me clarify a few of the most prominent questions in this article related to the bitcoin ban in India.
Can you buy Bitcoin and other Cryptocurrencies in India?
Yes, of course, you can buy bitcoin or any other cryptocurrency in India. And there is no known way to be able to stop people from buying cryptocurrency in India.
There is no ban on people from buying bitcoin from the cryptocurrency buy/sell websites and exchanges.
You definitely cannot buy cryptocurrency using an Indian bank account on an Indian cryptocurrency selling website because your bank is not valid to make transactions on these websites anymore. But, you can buy it from a different website or exchange which is located in another country or you can buy bitcoin using your PayPal account.
If you want to know how to buy bitcoin or other cryptocurrency being in India with a debit/credit card then I recommend you read this article: How to buy Bitcoin in India after RBI ban.
Is it legal or illegal to possess Bitcoin and other Cryptocurrencies?
Till now there is no known proof circulated by the Indian government which states possessing cryptocurrency is illegal. Which means you can buy and possess bitcoin or another cryptocurrency in India without having to worry about anything.
There is a huge majority of people in India who still buy bitcoin and you can buy it too.
Is trading Bitcoin or Cryptocurrency a crime?
No, trading bitcoin or cryptocurrency is not a crime. You can trade any cryptocurrency you want to. But there are certain things which can cause trouble if you are not cautious when it comes to trading cryptocurrency.
If you are trading cryptocurrency on a regular basis, and if you are generating huge revenue from it, then it is your duty to pay the taxes. If you do not pay your taxes then you could fall into trouble.
Always make sure you keep your trading profile clean by paying your taxes on time and also make sure to generate a track of the cryptocurrency trades you’ve made. This will help you to stay out of any trouble.
RBI’s bitcoin ban in India really did mess up with the people who live in India. And most of the people took the entire topic in a wrong way. You can buy, sell or trade bitcoin or other cryptocurrencies easily without any trouble.
I hope all the doubts that you had about Bitcoin ban in India is no more. If you have any questions regarding this topic then feel free to comment below. I will make sure to answer all your questions.