The banks clarified that the Reserve Bank has not yet released a directive in this regard, despite the Supreme Court order lifting the ban on cryptocurrency trading in India and enabling cryptocurrency trading. Banks refrain from dealings with cryptocurrencies. The crypto exchanges wrote to the RBI seeking clarity in this sense.
State and tax of current exchange: Cryptocurrency exchanges approach RBI for clarification
Furthermore, the RBI has been asked by cryptocurrencies to explain which categories of items, currencies, goods, and services are included in the cryptocurrency GST. In 2019, on some cryptocurrency sites, including Bitcoin, the indirect tax department launched an investigation into the tax. Praveen Kumar, CEO, and founder of the crypto-currency network, Belfrix Global, said:
It is estimated that the cryptocurrency industry in India is about $14 billion. Moreover, via crypto exchanges, over 30,000 jobs are being generated across the world. Cryptocurrencies are virtual currencies or currencies based on cryptography that are non-physical. Satoshi Nakamoto developed the crypto-currency in 2008.
Bitcoin, Ethereum, Ripple, Lightcoin, and Stellar are the main crypto-currencies. In the past year, Bitcoin has been the best-performing cryptocurrency. One of the most valuable and common cryptocurrencies is Bitcoin. This is the first crypto-currency as well.
Supreme Court order -- Conclusion.
Before the ban, the key concern was that digital currency proliferation could undermine the banking system. The rise in counterfeit money and the potential for financial irregularities and fraud still keep cryptocurrencies away from governments. The same explanation has been pointed out by the Reserve Bank of India. The Reserve Bank will place limits on crypto-currencies in April 2018.
The goal of the ban was to curb irregularities which could influence economic development. This was objected by the Internet and Mobile Association of India (IAMAI) before the Supreme Court. But the Supreme Court reversed the crypto-currency ban in March.
The court said that with this, there will be no legal impediment to the transaction of cryptocurrencies in the country, including bitcoin
