Is Crypto Trading Legal in India? Expert Opinion by Adv. Siby Varghese – Founder of Shield Law Firm
If you've ever wondered whether crypto trading is legal in India, here's the answer directly from Adv. Siby Varghese, a renowned cybercrime lawyer and founder of Shield Law Firm. Yes, crypto trading is legally permitted in India, but it is not recognized as legal tender. In simple words, you can buy and sell cryptocurrencies like Bitcoin, but you can't use them to make everyday purchases like you would with the Indian Rupee.
Adv. Siby Varghese, a top cyber law expert and crypto lawyer, explains that cryptocurrency trading is allowed in India, but it is tightly regulated. After the RBI ban in 2018, the Supreme Court of India overturned the ban in 2020, giving Indians the right to trade in digital assets under Article 19(1)(g) of the Constitution (freedom to trade or conduct business).
However, this does not mean crypto is unregulated. Here's what you must know: Crypto is not banned , but it is not legal tender .
, but it is . There is a 30% tax on crypto profits and 1% TDS on every transaction .
and . The government is yet to pass a comprehensive crypto bill , though discussions are ongoing.
, though discussions are ongoing. The RBI is promoting the Digital Rupee (e₹), a central bank digital currency (CBDC), as a regulated alternative to private cryptocurrencies. RBI Ban (2018): Banks were barred from dealing with crypto-related businesses.
Banks were barred from dealing with crypto-related businesses. Supreme Court Judgment (2020): The ban was struck down, restoring the legality of crypto trading.
The ban was struck down, restoring the legality of crypto trading. Tax Rules (2022-2023): A flat 30% tax and 1% TDS were introduced to regulate profits and trace transactions.
According to Siby Varghese of Shield Law Firm, as crypto becomes popular, scams are rising. Understanding how these frauds work can help you stay safe.
These scams promise high returns by using new investors' money to pay old ones. They collapse when fresh investments stop.
Fraudsters artificially inflate prices of low-value tokens, then sell off their holdings, leaving investors in losses. Example: Bitconnect (2017).
Scammers impersonate crypto influencers on Telegram, Twitter, or Discord, offering giveaways or fake investments.
Adv. Siby Varghese also warns about crypto influencers who misuse their social media presence to scam followers. Here are the tactics they use: Fake Luxury Lifestyle: Renting luxury cars, showing off vacations to create false success stories.
Renting luxury cars, showing off vacations to create false success stories. Scam Coins: Promoting coins they secretly hold, pumping the price, and dumping it after followers buy in.
Promoting coins they secretly hold, pumping the price, and dumping it after followers buy in. Overpriced Courses: Selling generic content for high prices with promises of secret strategies.
Selling generic content for high prices with promises of secret strategies. Fake Testimonials: Using bots or AI-generated reviews.
Using bots or AI-generated reviews. Edited Profit Screenshots: Posting fake earnings to gain trust. Do Your Research: Always verify the legitimacy of the exchange or token. Use Secure Wallets: Protect your crypto with hardware wallets and two-factor authentication. Avoid Guaranteed Profits: If it sounds too good to be true, it probably is. Stick to Trusted Exchanges: Use well-known, regulated crypto platforms. Watch for Fake URLs: Check spelling in website links, especially from social media or emails.
If you are a victim of crypto trading fraud, it's important to act quickly. You have legal rights under Indian cyber law.
Adv. Siby Varghese, a leading cybercrime lawyer in India, and his team at Shield Law Firm specialize in: Legal action for cyber crimes
Recovery from forex or crypto scams
Filing complaints under IT Act and IPC
Guidance on what to do after cyber crime against me
Call: +91 8884999803
Visit: www.sibyvarghese.com
Advocate Siby Varghese Cybercrime Lawyer
Crypto Law Expert
Co-Founder, Shield Law Firm
Co-Founder, Vakeel at Home app
Crypto trading in India is legal but regulated. Avoid unauthorized platforms, don't fall for social media hype, and protect your assets with the right legal knowledge. If you've been scammed, don't panic—legal help is available.
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