By Terry Ashton, updated December 11, 2024
With so much written online about this topic — much of it contradictory or simply out of date — it can be hard to know where to look. As a trusted supplier of the very latest crypto news, data, and information we see it as our job to clear things up once and for all. That’s why we’re going to take a deep dive into the subject, highlight the key points of view, and finally answer the pressing question you have been asking.
A grey area for crypto currency
You only have to perform the most cursory Google search to see that there is a serious amount of misinformation and disinformation in the crypto space. What originally began as a democratised approach to personal finance has gone through something of a seismic shakeup in recent years.
Sam Bankman-Fried, once the poster boy for crypto-funded philanthropy, is now sitting inside a jail cell for years to come. His high profile downfall has made many casual followers of the news suspicious of crypto coins, and not without reason. A lack of regulation and a perception of an industry that is too immature to correct its own failings has had a profound impact.
The result is that crypto in India resides in something of a grey area where mainstream news talks it down while certain online sellers try to pump it up. We’re going to shine a light on this grey area once and for all, allowing you to clear things up in your own mind and decide how you really want to take back control of your money. We’ll proceed by touching upon a key distinction.
The difference between “legal” and “legal tender”
One of the most confusing things about this subject is the subtle — and yet frequently glossed over — difference between something being “legal” and it being “legal tender”. A Rupee is legal and it is legal tender. A bicycle is legal but it is not legal tender. And nothing can be illegal but also be legal tender.
For something to be legal you just have to be able to own or use it without facing fallout from the legal system. If the police have the power to take it off you and prosecute you for having it in your possession, it’s illegal.
For an item to be legal tender you have to be able to have it in your possession and, crucially, exchange it at the point you consume goods and services. Legal tender is any means of making a payment between two people or two businesses, and it has to be tightly regulated to prevent fraud.
Take a look at the recent high-profile political Bitcoin scam and you will see what happens when things are not checked and balanced. Politicians caught appropriating their campaign funds in ways that were less than transparent and traceable soon found out the difference between “legal” and “legal tender” and it is something that is crucial to note for all investors.
Crypto casinos in India
While India has not made crypto illegal, there are not any crypto coins that are legal tender at the time of writing this article. No matter whether or not you want to order online groceries, book sports tickets, or play on sites like indiacasinos.com, you cannot do so with the backing of crypto. But what about a casino that only accepts crypto and makes no attempt to exchange crypto for legal tender?
The fascinating news is that you can legally make a wager with crypto currency coins in an online crypto casino in India. Your winnings will be paid out in crypto but you won’t be able to directly exchange it for Rs, or use it to buy groceries in your local store.
Knowing that you can win (and lose) crypto coins in a fly legal online crypto casino is important when deciding how you wish to play online. At the same time as exploring this new opportunity, look for a reputable, licensed online crypto casino that will protect you while playing.
Building crypto into the legal economy
The government will not turn a blind eye to crypto coins just because you cannot use them in conventional commerce. They have recently enacted a 30% tax on gains made through crypto investments, with the tax paid out in Rupees, not crypto. The latest rules and regulations also clearly state that any crypto transaction conducted between parties who reside outside of India must be included on the taxpayer’s return.
While you cannot use crypto to purchase goods and hire services, you can still profit from it if the value grows over time. Crypto is therefore treated as an appreciating asset by the tax department, meaning that you will have to declare it when making your annual return.
Building crypto into the mainstream economy in this way is a first step towards making it legal tender, but it is by no means all that is required. It may be the case that India never follows El Salvador and makes crypto legal tender in all walks of life. While we think that would be a real shame in terms of innovation and democracy, it is also understandable that legacy institutions would want to guard against it.
What does this mean for Bitcoin?
Every follower of the news will have heard of Bitcoin, after all, it has become something of a byword for the entire industry. Much like how many casual fans use the terms MMA and UFC interchangeably, millions do the same with Bitcoin and crypto. There’s nothing wrong with this from a brand recognition point of view, but it can make digesting the latest news a little difficult if you are looking for nuanced legal perspectives.
The key point here is that Bitcoin is treated the same as all other crypto coins in India and it is therefore legal to own but not legal tender. You can hold Bitcoin as an appreciating investment and build a portfolio of coins that will diversify how your money works for you. Ideal when you want to be able to plan for the future by moving away from the mainstream. Many investors in India find that they can strike the right balance between risk and reward by balancing crypto investments with more traditional options such as bonds and property.
Are all crypto currencies treated the same?
Yes, other coins like Ethereum are treated exactly the same way as Bitcoin is treated in India. The system is designed to be fair, transparent, and universal so that every investor and coin holder knows that they can hold the coins as assets but not use them as legal tender.
The clear path set out by the ruling institutions means that the grey area surrounding crypto is starting to become more black and white. Paying tax on these digital assets when they appreciate is the first step to moving them away from more opaque forms of appreciation and laundering. And because we champion the democratisation of crypto, we want to make it clear that this is a move every legitimate investor should be in favour of.
So…is crypto legal in India right now?
Yes, crypto is legal in India at time of writing. There are currently no plans for this to change in the near future and the direction that the industry is taking is more focused on regulating crypto as a form of investable asset. There is nothing wrong with this because tighter regulation will only serve to protect coin holders over both the short and long term.
While we hope that one day crypto will become globally recognised legal tender, we will wait to see how the rest of the world interprets the initial success of El Salvador. Could this small Latin American country turn out to be a global success story and the perfect use case for Bitcoin? Time will tell and it will certainly be fascinating finding out.