23 July 2024

Important Signal in India: “Business with Crypto is Not Illegal”

1 min read

The business of cryptocurrencies is not illegal. This was the ruling of a High Court in Orissa, India. Specifically, it was stated: “The mere dealing in cryptocurrencies can in no way be considered illegal.” Under Indian law, they are also not considered a form of money.

The court issued this statement in the course of a crypto fraud case known as Yes World Token. India is known for its very restrictive approach when it comes to crypto. There have been repeated legal attempts to completely ban trading, for example by the central bank. One of these bans was later overturned by the highest court.

Even today, the possibility remains open and the government is taking aggressive action against crypto. Since 2022, investors have to pay a 30 percent tax on each of their crypto gains. This is meant to make trading less attractive.

India has a population of 1.4 billion people. According to KuCoin, around 115 million people in India hold cryptocurrencies, less than 10 percent. Another study by CoinSwitch counts only 19 million crypto investors, 75 percent of whom are between 18 and 35 years old.

In conclusion, despite the challenges and the aggressive stance of the government, cryptocurrency trading remains a significant and legal activity in India. This ruling by the High Court in Orissa provides a clear signal that dealing in cryptocurrencies is not inherently illegal, offering some reassurance to investors and traders in the country.