Reserve Bank of India has once again issued a statement on cryptocurrencies

June 2, 2021

The Reserve Bank of India has once again issued a statement on cryptocurrencies, which are always in the news due to the unexpected jump and fall in their prices.
RBI’s new decision is a piece of relief news for cryptocurrency investors. RBI has said that the circular of 2018 is not effective only after the decision of the Supreme Court.
In the latest statement, RBI clearly mentioned that “Circular has already been Quashed from the day of Supreme Court’s decision on Virtual Currencies. 

What was in the 2018 circular?
It was being discussed for a long time that the government would ban all cryptocurrencies including bitcoin in the coming time. The major reason for this was the RBI circular issued in 2018, after which cryptocurrency exchanges were banned in India.
However, then the Supreme Court refused to ban cryptocurrencies. There is no definite guideline regarding cryptocurrencies in India yet.

Experts watching bitcoin believe that after this clarification from RBI, more people will invest in cryptocurrencies in the coming days. Cryptocurrency prices have been falling steadily since Tesla CEO Elon Musk’s tweet.

How is it bought and sold?
You can buy Bitcoin online (peer-to-peer) from a crypto exchange or directly from a person. The second medium is very risky and can also be used by fraudsters.
It is worth noting that even its exchanges are not controlled by any kind of regulation, but in India, they have been kept under the purview of civil and criminal laws, such as the IPC, 1860 and  Contract Act, 1872.
Before investing in these, check where the registered address of the exchange is and whether it is incorporated under Indian law. Some exchanges also follow the whole KYC procedures as per RBI guidelines and anti-money laundering procedures too.

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