By Lal Singh In India Cryptocurrency has become more popular. People started trading in Cryptocurrency and many users still don’t know whether it is legal to use different types of crypto apps or Online Crypto Platforms. A lot of users usually ask about CoinSwitch, which is a popular platform to trade cryptocurrencies. We need to check India’s crypto law and government guidelines to find out if CoinSwitch is legal in India.
Is it safe to use cryptocurrency in India?
In India Cryptocurrency is not illegal but you should not forget that, it is also not treated as a legal tender. You can’t use crypto like real money to buy products or services in your every day life, but you can buy, sell and trade it as a digital asset.
The Supreme Court of India lifted the RBI’s ban on crypto firms in 2020. After that, crypto exchanges were able to start working again with help from banks. Since then, it has been allowed to trade cryptocurrencies as long as certain conditions are met.
How the Indian Government Controls Crypto:
The Indian government doesn’t manage crypto like banks or stock markets do. Instead, it does it through tax laws and rules against money laundering.
The government put the following things in the Union Budget 2022:
- A 30% tax on money made from trading cryptocurrencies
- A 1% tax on some bitcoin transactions
This made it apparent that anybody who make money using cryptocurrency must pay taxes on it. This doesn’t mean full approval, but it does show that crypto trading is permissible in India.
Is it okay to use CoinSwitch in India?
Millions of individuals utilize CoinSwitch, a crypto platform based in India. Under Indian legislation, crypto platforms must register with FIU-IND (Financial Intelligence Unit – India). CoinSwitch has done this.
CoinSwitch is FIU-registered, which indicates that it:
- Rules for KYC
- Checks to precent money laundering
- Requirements for reporting transactions
This indicates that the CoinSwitch can legally do it’s business in India. It’s completely legal and authorized by the Indian government.
Is RBI or SEBI in charge of CoinSwitch?
No, RBI or SEBI do not control CoinSwitch. The reason for this is that India doesn’t have a crypto regulator yet. CoinSwitch, on the other hand, follows the law, including tax and money-laundering laws, which makes its business legal.
So, even if it isn’t “regulated” like a bank, it is still legal.
What Users Need to Do to Stay Legal?
It’s absolutely fine to use CoinSwitch, but it’s users have to follow all the guidelines given below.
1: Complete your KYC verification
2: Maintain Record of your all crypto transactions
3: Always report any income you made from cryptocurrency while filing your taxes.
4: Pay the 30% tax and TDS on your Crypto Income.
Using cryptocurrency for illegal activities or to cover up your income might get you in legal trouble.
Conclusion:
Right now it is absolutely fine to use CoinSwitch in India. The platform is registered with the FIU, CoinSwitch follows the KYC and AML requirements and works inside India’s tax system.
It’s safe and secure to trade cryptocurrencies on CoinSwitch platforms it follows all the rules & Guidelines given by the Indian Government. Even though Cryptocurrency aren’t treated as a Legal tender or a real money. Using CoinSwitch in India is legal as long as it’s users respect the guidelines set by the Indian government and pay their all taxes on regular basis.