There are two aspects of India when it comes to cryptocurrencies.
The currency itself is illegal and it cannot be used as a legal tender. When it comes to the cryptocurrencies exchanges it is clear that these are legal and can be operated within the jurisdiction of the country. The tax status of the cryptocurrencies it not clear as well and therefore the transactions currently performed in India are not taxed at all. Being a third world country the rules and regulations will be defined and implemented in this country as time progresses but to this point they are not at all demarcated for the general public. It is also a known fact that the Indians access the dark web to purchase the illegal items and for all such purchases, the payments are made in form of cryptocurrencies which shows that there are people in India that know how to effectively use the currency while hiding from the prying government eyes at the same time.
Regulations are likely to come
According to some Indian government resources, it is important to note that the regulations are being designed and they will be implemented as soon as possible probably by the end of 2018. It is not confirmed that the timeline will be followed but one thing is for sure that the Indians are working to make their country stand among the crypto users of the world. The regulations for the blockchain and crypto will be different from others and therefore it is important to note that separate rules will be defined for both.
There is no ban at all
Another important aspect of cryptocurrencies and India is that the country is not banning this medium of exchange at all. It is also important to note that the prominent political figures of India have also stated that it is important to make the cryptocurrencies a part of the Indian economy as the importance is increasing with the passage of time. There are some sources that are saying that the country might ban this form of currency but it is not at all happening. There is no ban on cryptocurrencies and India does not consider any such thing.
The Reserve Bank of India
The central monetary authority of the country has also stated that the cryptocurrencies must be regulated as the Indian must stand with the world. It is important that the exchanges are also given the status they deserve so that they can work freely in the country. Though it is unclear that what the Reserve Bank of India will be doing in this regard but it is speculated that the authority will be playing a decisive role in this regard.
The bottom line
It is completely unclear that when India will be regularizing the cryptocurrencies but it will be done soon. The time that was given to the people by the government was September 2018 but there is a complete silence in this regard. It is advised to all the cryptocurrency exchanges and users to wait a bit till the things become clear.
Over the last 12-18 months, the debate around cryptocurrencies in India has peaked immensely.
Why? Due to the tremendous rise in crypto businesses in the country.
Recently, the Prime Minister of India chaired a meeting on the regulation of virtual and digital currencies.