Many traders of crypto exchange in India were unable to transact in crypto starting 2018.
While some investors complained that they were unable to see the credited amounts in their bank accounts, various investors were unable to transfer the money over to their crypto wallets.
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Crypto: Indian Bank Freeze
When investors contact the banks and their wallet services, they are unable to find a solution.
When going to banks, most investors are told to contact their wallet service company.
At the same time, when contacting the wallet services companies, the investors are shown records that state the amount being credited to accounts.
This leaves many investors in a confused state where they do not know the correct authority to approach to complain about their money being stuck.
Before investing, many investors were aware the crypto coins are very risky investments.
When hearing that, many people assumed the risk to be only from the up and down movement of the value of the coin.
What many forgot to factor in though was that the risk arises not only from the upward and downward movement of the prices of these coins, but also from the fact that the legality of these coins is not clear in India.
Crypto Legality Issue
Cryptocurrencies have not been declared illegal in India. However, the finance minister has added that it is not legal tender – which means, it cannot be used to purchase goods or services.
At the same time, the tax department cracked down on various exchanges to track crypto transaction. Various investors were later given the notice to pay tax on the gains. This led many to believe that the government recognized it as a legal source of income.
A lot is expected from the government on this topic. Some are expecting the government to provide clarity on the issue of cryptocurrencies in India.
This at a time when China and S. Korea are cracking down on cryptocurrencies.
Cryptocurrencies occupy a grey spot in India.
Investors are advised to practice caution while investing in cryptocurrencies.