What if India bans circulation of cryptocurrency? What Zerodha founder says (2024)

FAQs

What if India bans circulation of cryptocurrency? What Zerodha founder says? ›

“Is the Indian govt banning cryptos? What happens to everything in circulation already?" the Zerodha co-founder tweeted. Nikhil Kamath recently took to Twitter to voice some of his doubts over cryptocurrencies. “The problem with bitcoins is that there are 1,000 different similar coins.

Well, in that case, you can always send your acquired crypto, and get the equivalent INR in your bank. However, this procedure of exit would come at a cost. The foreign exchange cost and penalties would cost you more than the actual exchange fees, had there been no ban in your own country.

People will not find legal ways to trade Bitcoins. An underground market will start to operate. Most of the exchanges will be decentralised i.e. it will be out of control of any government's jurisdiction. People will now use underground markets to sell and buy goods via Bitcoins.

1. **Low fees**: Zerodha offers low fees and commissions for trading, which can help you save money and increase your profits. 2. **Wide range of cryptocurrencies**: Zerodha offers trading in a variety of cryptocurrencies, including popular coins like Bitcoin and Ethereum.

Gains made from trading cryptocurrencies are taxed at a rate of 30% (plus 4% cess) according to Section 115BBH. Section 194S levies 1% Tax Deducted at Source (TDS) on the transfer of crypto assets from July 01, 2022, if the transactions exceed ₹50,000 (or even ₹10,000 in some cases) in the same financial year.

This restricts direct access, but users can still potentially access Binance through virtual private networks (VPNs). Reason for Ban: The Indian government is concerned about non-compliance with anti-money laundering regulations by Binance. There's no official word on whether the ban will be permanent.

In Short. Coinbase launched in the country in April last year with an option to let users buy crypto via UPI. Days after the launch, the company was forced to shut down the UPI payment option due to the government's interference. Now, Coinbase is discontinuing services in India.

Although there is nothing that can stop a government or central bank from banning Bitcoin (& a few have already done so), most would not go that far for two reasons: The Streisand effect. A ban on Bitcoin is difficult to enforce.

The People's Bank of China argues that its ban on cryptocurrencies is to curtail financial crime and prevent economic instability. However, China's cryptocurrency ban comes amid fears that cryptocurrencies were facilitating capital flight from its markets, bypassing conventional restrictions.

Is my money safe with Zerodha? ›

Trading with Zerodha is safe. Like all registered stockbrokers, the company is regulated by SEBI guidelines. It is a member of BSE, NSE, MCX, and CDSL. It is audited by the exchanges regularly.

Yes, Zerodha is a legal stock broker in India. The company is registered with SEBI, CDSL, BSE, NSE & MCX and works under the guidelines laid by stock market regulatory bodies. There are no reports of legal violations by the company.

Zerodha offers Coin as a free add-on to its customers. Zerodha doesn't take any commission from AMC or brokerage from customers. The only direct source of earning for Zerodha from Coin is the interest on the surplus funds lying for a few days in your trading account.

Cryptocurrency exchanges like Binance, Kraken, Kucoin and others were banned in India by the FIU. The Director FIU IND wrote to the Secretary of Meity to block these exchanges as they were illegally operating without following the provisions of the PML Act in India.

While cryptocurrency is banned in mainland China and there are strict controls on capital movement across the border, people are still able to trade tokens such as bitcoin on crypto exchanges such as OKX and Binance, or through other over-the-counter channels.

The Crypto Indian Coin (CIC) is a fully decentralized cryptocurrency project belonging to the Crypto Indian platform. The project aims to provide customers with decentralized farming services, personalized financial solutions, staking pools, and various interest models and earning opportunities.

The future of cryptocurrency in India is heavily influenced by government regulations and the stance of regulatory bodies like the Reserve Bank of India. The government has introduced measures such as a 30% tax on crypto asset profits and the potential introduction of a digital rupee .

First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.

No, cryptocurrency is not banned in India in 2021. Let me elaborate, Recently, the government of India announced that it plans to introduce 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021'.

Cryptocurrency is a safe investment or not? Like any other investment, cryptocurrency is not a risk-free investment. The market risks, cybersecurity risks and regulatory risks, as cryptocurrency is not issued or regulated by any central government authority in India.