By Lal Singh In Indian Over the past few years, cryptocurrency Trading is trending and have gotten more and more popularity. Online Trading Platforms like CoinDCX have grown rapidly for this demand. It is very necessary to know where CoinDCX is legal in India or not and what the laws there for you if you wish to use the platform to trade digital assets.
Current Legal Status of Cryptocurrencies in India:
Before we proceeds to CoinDCX, it’s essential to know what the law states about cryptocurrencies in India:
- India does not have any ban or restriction on cryptocurrencies. You can legally trade and hold digital currency like Ethereum, Bitcoin and others. Indian tax regulations treat these digital assets as “Virtual Digital Assets” (VDAs), it means it has a legal standing for tax reasons.
- But they are not counted as a legal tender, so you can’t use cryptocurrencies to buy every needs like groceries, Vegetables or any other products.
- RBI has made it clear that cryptocurrency are not allowed to be used as a form of payment but they have not stopped anyone from trading or owning them.
In 2020, the Supreme Court of India has cancelled a previous banking ban that made it difficult for crypto transactions to happen. This made it possible for exchanges and users to run their business smoothly & legally.
Is CoinDCX Legal in India?
Answer is Yes the CoinDCX is legal to do operate their business in India. In real life, this means:
Licensed by the Indian Government
The FIU-IND has registered CoinDCX as a “Reporting Entity.” As per the India’s guidelines against money laundering i.e: AML and financing terrorism this is a necessary step.
The platform has to follow certain rules because it is FIU-registered:
- The requirements for KYC verification
- Complying with Indian standards for AML/CFT
- Updating and Reporting to the authorities on a regular basis
CoinDCX is a popular Trading Platform for Indian users because it follows all the rules and guidelines.
Compliance with Tax and Reporting Rules:
As per the Indian law, any income coming from trading of crypto are taxable at 30% on gains. Many online crypto exchanges, like CoinDCX, automatically charging 1% TDS (tax deducted at source) on all crypto transactions.
Fulfilling all these taxation standards is a clear sign that a business is functioning legally in India.
What CoinDCX’s Legal Operation Means for Users:
Through a legal Trading Platform like CoinDCX, you can:
- Create your account using the KYC
- Utilize Indian Currency and exchange crypto for rupees.
- You can Trade and Keep digital assets
- Receive automated TDS and Tax Documentation
Following Indian laws and AML regulations helps to protect users and reduce the risks of breaking the law while trading on unregistered platforms.
Limitations and Uncertainty in Law & Regulations:
CoinDCX is legal and complies with the govt. guidelines but the RBI says that India does not issue any licenses to crypto exchanges like it does to banks.
- There is still no proper crypto laws
- The rules are keeps changing time to time
- Crypto currencies are not treated as a legal tender in India, therefore Indian law never consider them as a Currency.
Due to these factors, CoinDCX can still exist and Indian users can still trade there but the legal status of cryptocurrency as a whole is constantly changing.
Conclusion
CoinDCX is legal in India and the exchange follows all the guidelines of Indian govt, including as registering with the FIU, complying with KYC rules and complying with AML/CFT rules. Indian customers can Trade cryptocurrencies on the site smoothly as long as they also fulfill all tax regulations and reporting requirements.
Cryptocurrencies are still not considered as a legal currency and the rules regarding them are keeps changing time to time. As a user it is always beneficial to stay up to date on new rules & regulations related to Cryptocurrency and always ensure that your tax returns are correct and use any registered exchanges to lower your legal and financial risks.