Is Bitcoins legal in India?
At present, there are no regulations governing virtual currencies like bitcoins in India. RBI, on December 24, 2013, issued a press release on virtual currencies like bitcoins, litecoins, bbqcoins, dogecoins stating that creation, trade and usage of virtual currencies as a medium for payment is not authorized by any central bank or monetary authority. Further, RBI has cautioned virtual currency traders and users to various security related risks such as hacking, malware attack etc.
While RBI has not legalized bitcoins, it has declared them unauthorized as of now. RBI is currently examining the risks associated with the usage, holding and trading of virtual currencies under the extant legal and regulatory framework of India, including foreign exchange and payment systems laws and regulations.
There is enough scope for legalizing bitcoins. One has to wait and watch as to which approach the Indian government takes. Keeping pace with the changing times, Indian government will have to come out with appropriate amendments in the foreign exchange and information technology laws to specifically include bitcons.
What are the popular bitcoin websites that do transactions?
HighKart.com became the first e-commerce site in India to exclusively accept bitcoins as a payment method. WERWIRED, a Bangalore-based geospatial, security and entertainment consulting company offered bitcoins as a mode of payment for its customers. Castle Bloom, a salon in Chandigarh, became the first physical outlet to start accepting the digital currency. Buysellbitco.in, an online portal dealt in buying and selling of bitcoins in India. But it was raided by the Enforcement Directorate.
Some of the Indian Exchanges to Buy Bitcoins are PocketBits, Unocoin, Zebpay, Coinsecure.
PocketBits is one of the Best Cryptocurrency Exchange to Buy & Sell Bitcoins or Altcoins in India.
Unocoin is one of the India’s Trusted Bitcoin Company having more than 150,000 users. Buy and Sell Bitcoins in India from Unocoin. Apart from Buying and Selling Bitcoins, you can Send & Receive Bitcoins. It can also be used to do Prepaid/Postpaid Recharges. Unocoin can be accessed from the Website and Unocoin also has an Android & iOS App
What is the value of the bitcoin?
The value of the bitcoin varies in each website. Please do check with different traders and in different websites before buying it.
Who are those trading in bitcoins in India?
Tech-savvy young investors, real estate players and jewellers are among those invested in bitcoin and other virtual currencies.
How do I invest in Bitcoins?
You can get bitcoin by:
– Mining them (the process by which new Bitcoins are generated by solving the math problems quoted in the website).
– Purchasing them from bitcoin exchange for real money
– Receiving them in return for sale of goods or services
Is it worth investing in bitcoins?
Today’s world is running towards digitalisation. So, it is not quite far for India to reach the so called Digital currency stage. Just that the Government has to make it regularised.
Ofcourse, it is worth investing once the government regularises it.
Is it safe investing in Bitcoins?
The network is peer-to-peer and transactions take place between users directly through the use of cryptography, without an intermediary. These transactions are verified by network nodes and recorded in an immutable public distributed ledger called a blockchain.
The Sharp rise in bitcoin exchange rate in recent years (from $1000 to $1300 for January-April 2017 and from $1300 to $1700 in the last two weeks) raises concerns that the rate may “collapse” and even to return to their former positions; however, bitcoin had and still have serious preconditions for growth, so it is not necessary to consider this growth as a “bubble”.
What is the minimum amount needed to buy Bitcoins in India?
You need not buy one Bitcoin to begin investing with. You can start with buying a part of the Bitcoin. The minimum amount needed to begin investing in Bitcoins is around Rs.500.
How is investing in Bitcoins advantageous for me?
Bitcoin shows stable annual scale, growth rates, and there is reason to believe that this trend will continue. The graph below shows that the exchange rate of bitcoin over the last 12 months has increased about 4 times from 450 to $ 1,700.
Bitcoins have a number of benefits. It significantly reduces transaction costs, enables the growth, ease and security of e-commerce and physical transactions, etc.
What are the disadvantages of bitcoins?
– When goods are bought using Bitcoins, and the seller doesn’t send the promised goods, nothing can be done to reverse the transaction. This problem can be solved using a third party escrow service like ClearCoin, but then, escrow services would assume the role of banks, which would cause Bitcoins to be similar to a more traditional currency.
– Risk of Unknown Technical Flaws : The Bitcoin system could contain unexploited flaws. As this is a fairly new system, if Bitcoins were adopted widely, and a flaw was found, it could give tremendous wealth to the exploiter at the expense of destroying the Bitcoin economy.
Do be aware that most of them are out there to scam you. If you do decide to invest, make sure it’s going to a legit company that pays you back.
What are the legal procedures to buy Bitcoins in India?
Submit your PAN card and a valid address proof and a bank account. Make sure that the PAN and bank account belongs to the same person. The verification process takes about 2-3 working days. After this, you are good to go.
Do we get loans to invest in Bitcoins?
It depends on the risk potential. Say if you can afford some EMI for loans then you should go for it .
Investment is always Good.. And as you can see the bitcoins is going popular as compared to share market or any other investment plans in INDIA.
so, it is important for the money to be invested to increase your returns.
Find out some interest bearing funds when you invest in bitcoins. For example, BitBays is an exchange website which pays a small promotional interest rate on all balances held on their site.
So, calculate your interest to be paid on your loan and the interest gained in bitcoin investments and the final returns expected once you sell the bitcoins. Only if you are sure of gains, you can go for the loan.
What is the procedure to get loan for bitcoins?
The loan can be taken as personal loan as the reason for the personal loan need not be mentioned. The procedure can be followed just as you follow for the personal loan.
What you should know before investing in bitcoins?
Since use of bitcoin involves high level of risks, unless ambiguity surrounding bitcoins is resolved its use cannot be foolproof.
Research before investing in Bitcoins. There are many websites and it is recommended to find the correct and trustworthy one.
How is the tax calculated when you trade in bitcoins?
The tax aspect of bitcoins is also a grey area, in order to comply with the income tax regulations, a person accepting bitcoins against services should pay income tax after converting bitcoins into rupees and the bitcoin sellers who earn profit can pay capital gains tax (if selling after a long duration). Such steps will legitimize the unregulated bitcoins transactions.
There are actually 3 ways in which you earn bitcoin & the taxation differs from one to another.
The income tax authorities may choose to tax the gains from bitcoins under the head “Income from other sources”. Further, if the income gets taxed under “Income from other sources”, the taxpayer would have to pay taxes at a rate as applicable to the tax slab he falls under. For eg, if his taxable income exceeds Rs 10 lakh, he would be liable to a tax @ 30% as against the flat rate of tax of 20% he would be liable to pay, if charged to tax under long-term capital gains. The benefit of indexation as would be available if taxed under capital gains , would also not be available if taxed under Income from other sources.
India has sent tax notices to tens of thousands of people dealing in cryptocurrency after a nationwide survey showed more than $3.5 billion worth of transactions have been conducted over a 17-month period.
So, it is also important to know the taxation rules and also to pay the tax when needed.
In summation, bitcoins are digital cash and decentralized, peer-to-peer payment system. Being volatile in nature, care has to be taken that a mechanism is devised to tackle risks associated with fraud and money laundering. Regulators will have to take steps to provide individuals and businesses with rules to integrate this new technology with the formal regulated financial systems.