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As a cryptocurrency enthusiast, you may want to know what is going on in India regarding cryptocurrency, blockchain, and NFTs.
Those who are not familiar with official talks are not able to understand what the government said and what it actually means.
Also collecting information on what GOI previously said or done on crypto is a bit hard as you have to search for them from zero hence I decided to publish an article dedicated to Official Talks Of GOI & RBI On Crypto.
In this article, you may find all the information that is officially said or released in writing by the GOI, RBI, or employees of Govt. I will also try to add those pieces of stuff that are given by big businessmen & entrepreneurs.
If I missed any then let me know through the comment section.
Updates are year-wise.
Crypto In 2008 to 2012
Crypto was growing slowly these years, Bitcoin was the lone survivor till 2011. Other coins like Litecoin jumped into the cryptocurrency race in 2011.
Crypto In 2012 to 2015
RBI first talked about cryptocurrencies on 24th Dec 2013 in their Press Release. Click here to read that Press Release.
Let’s check out the highlight points from this press release.
- RBI says that the creation, trading, and usage of cryptocurrencies are not authorized.
- Warned users on their loss.
- There is no framework on such transactions hence no one is there to help to solve your problem (disputes or refund).
- Cryptocurrencies are highly volatile.
Overall, RBI just warned the people of India on Cryptocurrency.
Note: The important point to note is RBI never mentioned blockchain in their Press Release of official Notification.
As per some reports, Mr. P Chidambaram (former Finance Minister) says “The RBI is presently examining the issues associated with the usage, holding and trading of virtual currencies, including bitcoins, under the extant legal and regulatory framework of the country, including foreign exchange and payment systems laws and regulations.” In Rajya Sabha.
Crypto In India From 2015 to 2018 (India Ban on Crypto)
On 1st Feb 2017 RBI issues another Press Release on Crypto. Let’s see RBI on Crypto thinks.
- They mentioned that they warned users on the usage of cryptocurrencies in their press release dated Dec 24, 2013.
- Any user trading or involved in crypto at their own risk.
- No licenses are issued to any crypto yet.
In Oct-Nov 2017 two PILs (Public Interest Litigation) are filed in the Supreme Court of India. One wants to Ban crypto and another wants to get regulate it.
It is also said that the government formed a committee to understand cryptocurrencies.
In Dec 2017, the Ministry of Finance released a Press Release with a title saying GOI warns people “Against Risks in Investing in Virtual ‘Currencies’; Says VCs are like Ponzi Schemes.
Major News on Crypto in India 2018
One of the major updates to date comes from RBI on 6th April 2018.
Asking All Commercial and Co-operative Banks /Payments Banks/Small Finance Banks /NBFCs / Payment System Providers to stop dealing with any crypto, the person who deals in crypto, or the company.
- Those banks or institutions involved within crypto should get exit within 3 months from the date circular issued.
After RBI’s Notification, many Indian Crypto Exchanges files petitions in the Supreme Court of India.
Read the full Notification here.
On 28.12.2018, several questions were answered in Lok Sabha, asked in Lok Sabha by FEROZE VARUN GANDHI and ARVIND GANPAT SAWANT.
Questions were related to Govt stance on Crypto. Click here to find the PDF version of Questions & Answers.
Things Happened In 2019
Govt formed a committee in 2017, it is said that this committee suggested govt to Ban all cryptocurrencies or Private Cryptocurrencies.
MoF prepared a draft on the basis of the above Committee.
Ministry of Finance drafts a Bill with Title, “Draft Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019”
Following are the key points of this Draft;
- Prohibition on mining, holding, selling, trading, issuance, disposal, or use of crypto within a country.
- Whether it is coin or token, this draft works on every such currency that is like bitcoin or crypto.
- Involving in crypto can put you in Jail for up to 10 years or impose a fine or both.
Click here to read the draft.
Crypto In 2020
2020 was the best year for Indian crypto users. Ban on crypto in India was revoked.
On 4th March 2020, the Supreme Court of India removed RBI’s Ban from Crypto.
Read the Judgement of SC here.
Bitcoin and other cryptocurrency prices were taken speed up.
The Year 2021 (India bill on crypto currency)
On 9th Feb 2021, Financial Minister Nirmala Sitharaman said, “A high-level Inter-Ministerial Committee (IMC) constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions to be taken in the matter recommended in its report that all private cryptocurrencies, except any virtual currencies issued by the state, will be prohibited in India,” in Rajya Sabha.
On 5th March 2021, Financial Minister Nirmala Sitharaman says on CNBC TV18, “We want to make sure that there is a window available for all kinds of experiments which will have to take place in the crypto world,” “We are not closing our minds.”
On 31st May 2021, RBI issued a circular mentioning, Banks and other entities can’t stop crypto users from transacting. Some India bank keeps ban on banks crypto after this circular things went smooth.
The Current Year 2022
Several Major updates come in this year.
1-2 Feb 2022 During Budget Session
Finance Minister Nirmala Sitharaman says RBI will issue its own Digital Rupee called Central banking Digital Currency using Blockchain & other technologies in 2022-2023.
India will impose a 30% Tax on Crypto and 1% TDS.
During Press Conference, RBI Deputy Governor T Rabi Sankar said that RBI’s Digital Rupee will be exactly like Fiat Rupee but the only difference will be that it will be available in a Digital nature only.
RBI Governor Calls Crypto A Threat To India’s Macroeconomic Financial Stability