Bitcoins are known as the most famous cryptocurrency which is only available in digital form not physical form. It is a kind of virtual currency that has almost the same function as paper currency. But Bitcoins are not regulated by any centralized/government authority. Apart from Bitcoin, there are many other currencies like Litecoin, ETH, Dogecoin, and many more. Bitcoin is the most famous and well-reputed in the market of cryptocurrency. Bitcoin and other digital currency is in use since 2009.
Bitcoin Legal Status in India:
The legal status of Bitcoin India and other cryptocurrencies remains uncertain. In 2018, the RBI put restrictions on helping and promoting transactions of Bitcoin in India for commercial banks. It was a major shock in the crypto market. But later this order was annulled by the Supreme Court in 2020. This helped investors to resume their activities in India. However, it was not legal to trade or invest in the form of crypto.
Bitcoin Price in India:
How to Legally Buy Bitcoins in India?
Investors should submit their required documents like Aadhar cards and PAN cards and they must complete their process of KYC. If investors want to buy Bitcoin, they must place an order to buy them on the exchange of cryptocurrency. after the order is placed, investors can transfer the amount of crypto exchange directly from their bank account. There are also alternatives to debit or credit cards, RTGS, and NEFT cards. After this, the investor can keep their data secure in the wallet of the cryptocurrency that is provided.
Bitcoin Price Graph:
Where to buy Bitcoin in India?
Investors can ponder upon these platforms while buying Bitcoins like Coinbase, Coindesk, and Zebpay. Users can buy bitcoins from these exchanges of cryptocurrency at the market price of that time. Digital currencies can also be bought using international credit cards. Some exchanges of cryptocurrency provide mobile apps that can be easily downloaded for both Android and iOS users, so they can connect their savings bank accounts to their phones and utilize them for their instant transferring. Investors must fulfill the process of KYC if they want to start trading in bitcoins. Therefore, investors need to have a card of PAN which is linked to their bank accounts.
What is the Minimum Amount to Invest in Bitcoin?
In India, there is no specific amount that you need to spend to buy Bitcoin. The working of Bitcoin is the same just like shares. For instance, shareholders can buy a small amount of shares, investors can also purchase small bits of cryptocurrency if they cannot buy the whole share. Investors can also add money to their wallets and utilize their money to buy bitcoins. Investors can invest as low as 100 IDR but limit my differ from exchange to exchange.
Storing Bitcoin in India:
- Cold Wallets: These wallets keep the private keys of users offline. It works in harmony with other software which are compatible. Cold wallets are very secure as they do not keep the information digitally
- Hot Wallets: these wallets require internet to connect. Users can send and receive tokens for successful business transactions. Hot wallets are further divided into web wallets, mobile wallets, and desktop wallets.
Things to Remember Before Buying Bitcoin:
Investors must perform due diligence when investing so they can have ideas and information about the global market and the Indian capital market. The research can be done online on various websites. Also, investors need to keep a record of the movement in the prices of digital currency and their bitcoin share in the crypto market.
Case Study: India’s Ban on URLs of 9 Crypto Exchanges, Including Binance, for Non-Compliance with Anti-Money Laundering Laws
The Financial Intelligence Unit FIU which comes under the finance ministry of India has issued notice to 9 offshore companies of crypto and asked the Ministry of Electronics and Information Technology to block their URLs in India. This action was taken due to disobedience to Indian anti-money laundering law. As per notice, crypto like Binance and Kucoin are operating illegitimately in India. Moreover, these 9 crypto exchanges are Binance, Kucoin, Huobi, Kraken, gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfenex. The FIUI has issued a notice under section 13 of the Prevention of Money Laundering Act, 2002 (PMLA).
The notice states that these virtual digital asset providers, whether operating inside or outside India are involved in activities like virtual asset transfers, virtual asset to fiat currency, safekeeping of virtual digital assets, or gaining control over digital assets, they all must register with FIU as an “reporting entity”. They must obey the specific demands that are mandated under the Prevention of Money Laundering Act PMLA 2002.
As per FIU notice, 31 VDA SPs have completely registered themselves with FIU India. The FIU of India serves as a significant national agency that has to look after all the sending, receiving, processing, and analyzing to share information regarding any illicit financial transactions with law enforcement agencies and FIUs.