Cryptocurrency: India - Revision history

Pdewan: /* Reason behind the boom: 2017 */

2025-05-27T12:06:28Z

‎Reason behind the boom: 2017

Pdewan: /* Reason behind the boom: 2017 */

2025-05-27T12:05:57Z

‎Reason behind the boom: 2017

Pdewan: /* Reason behind the boom */

2025-05-27T12:02:57Z

‎Reason behind the boom

Jyoti: /* The legal position */

2022-11-28T19:30:25Z

‎The legal position

Jyoti: /* Scams/ frauds */

2021-03-07T21:26:31Z

‎Scams/ frauds

Pdewan: /* Views */

2021-03-06T23:58:23Z

‎Views

Jyoti: /* The legal position */

2021-02-23T10:14:33Z

‎The legal position

Jyoti: /* Change in value */

2020-10-15T20:05:06Z

‎Change in value

Jyoti: Jyoti moved page Bitcoins and India to Cryptocurrency: India without leaving a redirect

2020-10-15T20:02:45Z

Jyoti moved page Bitcoins and India to Cryptocurrency: India without leaving a redirect

Jyoti: /* Reason behind the boom */

2018-09-11T00:54:40Z

‎Reason behind the boom

← Older revision		Revision as of 12:06, 27 May 2025
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← Older revision		Revision as of 12:05, 27 May 2025
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	According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoins. Besides this, new bitcoins are created in a regular and limited numbers which are halved from time to time. The next halving will happen in the mid-2020.		According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoins. Besides this, new bitcoins are created in a regular and limited numbers which are halved from time to time. The next halving will happen in the mid-2020.
		+	==Fading interest in crypto==
		+	=== India vis-à-vis the world ===
		+	====2023, 2025====
		+	Is the global crypto hype fading? In India, Brazil, the US & France, crypto ownership dropped between 2023 & 2025 – India fell from 27% to 20%. But it slightly rose in China, Germany, the UK & South Africa
		+
		+	THE TIMES OF INDIA, NEW DELHI \| TUESDAY, MAY 27, 2025
		+
		+	Share of respondents in selected countries who said that they used or owned cryptocurrencies (in %)
		+
		+
		+	South Africa
		+	2023: 10%
		+
		+	2025: 11%
		+
		+	Brazil
		+	2023: 25%
		+
		+	2025: 22%
		+
		+	India
		+	2023: 27%
		+
		+	2025: 20%
		+
		+	United Kingdom
		+	2023: 12%
		+
		+	2025: 16%
		+
		+	Germany
		+	2023: 12%
		+
		+	2025: 14%
		+
		+	United States
		+	2023: 13%
		+
		+	2025: 11%
		+
		+	China
		+	2023: 10%
		+
		+	2025: 11%
		+
		+	France
		+	2023: 13%
		+
		+	2025: 16%
		+
		+
		+	Source: Statista Consumer Insights

	[[Category:Economy-Industry-Resources\|B CRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIA		[[Category:Economy-Industry-Resources\|B CRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIA

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 CRYPTOCURRENCY: INDIA]]
-=Reason behind the boom=
+= Fluctuating interest in Cryptocurrency=
 [http://www.thehindu.com/business/markets/whats-behind-the-bitcoin-boom/article21254937.ece  Aarati Krishnan, What’s behind the bitcoin boom?, December 3, 2017: ''The Hindu'']
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 According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoins. Besides this, new bitcoins are created in a regular and limited numbers which are halved from time to time. The next halving will happen in the mid-2020.
 = Scams/ frauds=

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 Last year, Unocoin raised $5 million in a round led by Tim Draper’s Draper Associates, with participation from XBTO Ventures and 2020 Ventures.
-[[Category:Economy-Industry-Resources|B CRYPTOCURRENCY: INDIA
+=Ownership of Cryptocurrencies by public=
 CRYPTOCURRENCY: INDIA]]
-[[Category:India|B CRYPTOCURRENCY: INDIA
+[[Category:India|B CRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIA
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← Older revision		Revision as of 21:26, 7 March 2021
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	But some influential investors have tried squeezing out their money in unlawful ways. In March, Surat realtor Shailesh Bhatt complained that he was abducted by some policemen and made to transfer 176 Bitcoins from his digital wallet. About a dozen cops were arrested in connection with the conspiracy till July, and the name of former BJP MLA Nalin Kotadiya also cropped up in the investigation. Later, it was alleged that Bhatt himself had abducted a BitConnect promoter, Dhaval Mavani, and his employee Piyush Savaliya, to extort 2,256 Bitcoins. One of Bhatt’s alleged partners in crime, Kirit Paladiya, then doublecrossed him to get more than his fair share of the cryptocurrency ransom.		But some influential investors have tried squeezing out their money in unlawful ways. In March, Surat realtor Shailesh Bhatt complained that he was abducted by some policemen and made to transfer 176 Bitcoins from his digital wallet. About a dozen cops were arrested in connection with the conspiracy till July, and the name of former BJP MLA Nalin Kotadiya also cropped up in the investigation. Later, it was alleged that Bhatt himself had abducted a BitConnect promoter, Dhaval Mavani, and his employee Piyush Savaliya, to extort 2,256 Bitcoins. One of Bhatt’s alleged partners in crime, Kirit Paladiya, then doublecrossed him to get more than his fair share of the cryptocurrency ransom.
		+
		+	=Usage of Cryptocurrency in India =
		+	==2021: tech cos use crypto for pay, perks==
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F03%2F06&entity=Ar02906&sk=018364FB&mode=text Mamtha A, March 6, 2021: ''The Times of India'']
		+
		+	[[File: Use of cryptocurrency in India, How it works.jpg\|Use of cryptocurrency in India, How it works <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2021%2F03%2F06&entity=Ar02906&sk=018364FB&mode=text Mamtha A, March 6, 2021: ''The Times of India'']\|frame\|500px]]
		+
		+
		+	New-age tech companies are satiating their young workforce’s growing desire for digital money by using a workaround to pay either part of their salary, bonus or other incentives in cryptocurrency. For employers, this is a quick and easy transaction, while for employees the lure is the possibility of the crypto appreciating in value.
		+
		+	There are two approaches taken by employers. One is to register their entities in crypto-friendly nations and pay their employees in cryptocurrency to avoid any legal or tax hurdles. The second is to record the payment as a rupee transaction in their books, but to facilitate the conversion of the rupee into cryptocurrency.
		+
		+	An executive from a gateway company, which facilitates payments for cryptocurrency through banking channels, said, “Generally, we use a stable coin/cryptocurrency like Tether (USDt) to pay salaries. Employees can cash them out immediately or hold on to them.” Since Tether is pegged to the dollar, a systems engineer with a pay package of $60,000 per annum will get 60,000 USDt.
		+
		+	In India, cryptocurrency continues to be a grey area and both employees and employers are worried about the tax implications. “After encashment of altcoins via cryptocurrency exchanges, I file that amount as income from consultant fee for tax returns,” said Sujeet Kumar, a Patna-based consultant for use cases of blockchain and cryptocurrency.
		+
		+	Kumar gets paid in altcoin like Ethereum, Plaas Token and Audio Coin, which he encashes through Indian cryptocurrency exchanges. “I usually convert the coins according to my need. Most of my clients are in the cryptocurrency market, thus making the transactions easier and faster. I have taken my last year’s bonus via cryptocurrency too.”
		+
		+	The CEO of a cryptocurrency news website said, “We follow a method where we pay salaries in cryptocurrency and draw a salary slip in rupee. This spares employees from any concerns if their salary slips are in crypto.”
		+
		+	Opinder Preet Singh, who heads a crypto hedge fund called Chain Assets Capital, said, “With too many legal regulations and lack of clarification on recognising cryptocurrency in India, we have registered our company in a crypto-friendly jurisdiction abroad. This allows us to pay salary, bonuses and incentives or spend money in India and also around the globe, especially for freelancers hired overseas.”
		+
		+	[[Category:Economy-Industry-Resources\|B CRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIA
		+	CRYPTOCURRENCY: INDIA]]
		+	[[Category:India\|B CRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIACRYPTOCURRENCY: INDIA
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	=Views on Cryptocurrency=		=Views on Cryptocurrency=

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 But some influential investors have tried squeezing out their money in unlawful ways. In March, Surat realtor Shailesh Bhatt complained that he was abducted by some policemen and made to transfer 176 Bitcoins from his digital wallet. About a dozen cops were arrested in connection with the conspiracy till July, and the name of former BJP MLA Nalin Kotadiya also cropped up in the investigation. Later, it was alleged that Bhatt himself had abducted a BitConnect promoter, Dhaval Mavani, and his employee Piyush Savaliya, to extort 2,256 Bitcoins. One of Bhatt’s alleged partners in crime, Kirit Paladiya, then doublecrossed him to get more than his fair share of the cryptocurrency ransom.
-=Views=
+=Views on Cryptocurrency=
 ==Government of India/ FM Arun Jaitley==
 [https://economictimes.indiatimes.com/markets/stocks/news/government-doesnt-recognise-bitcoin-as-legal-fm-arun-jaitley/articleshow/61873558.cms  Government doesn’t recognise bitcoin as legal: FM Arun Jaitley, December 1, 2017: ''The Economic Times'']
@@ Line 250: / Line 250: @@
 Mr. Dalmia, in his plea, has sought a direction to the Centre to take steps to restrain sale and purchase of illegal cryptocurrencies like Bitcoins, which were being traded openly for “illegal activities” like funding terrorism and insurgency.

← Older revision		Revision as of 20:05, 15 October 2020
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	The company, launched in 2015, said, the increasing downloads highlight the "growing acceptance of Bitcoins as one of the most popular emerging asset class."		The company, launched in 2015, said, the increasing downloads highlight the "growing acceptance of Bitcoins as one of the most popular emerging asset class."
		+
		+	=The legal position=
		+	==Supreme Court allows cryptocurrency trading==
		+	[https://timesofindia.indiatimes.com/business/india-business/supreme-court-allows-cryptocurrency-trading-cancels-rbis-2018-circular/articleshow/74470172.cms SC allows cryptocurrency trading, cancels RBI's 2018 circular, March 4, 2020: ''The Times of India'']
		+
		+	NEW DELHI: The Supreme Court allowed a plea challenging the Reserve Bank of India’s (RBI's) 2018 circular which barred banks from trading in cryptocurrencies.
		+
		+	"Trading in cryptocurrencies now will be allowed," the top court noted.
		+
		+	In April 2018, the RBI had issued a circular barring banking and financial services from dealing in virtual currency or cryptocurrency such as Bitcoin, most valued cryptocurrency in the world.
		+
		+	Cryptocurrencies are digital currencies in which encryption techniques are used to regulate the generation of currency units and verify the transfer of funds, operating independently of a central bank.
		+
		+	The RBI had stated that virtual currencies (VCs) (cryptocurrencies and crypto assets) "raise concerns of consumer protection, market integrity and money laundering." In view of the associated risks, banks were asked not to deal with crypto-related businesses.
		+
		+	This circular was challenged by an industry group Internet and Mobile Association of India (IMAI) before the SC.
		+
		+	"Investments had stopped and start-ups were staying away from starting business in the crypto and blockchain space in India which will change now that the Supreme Court has said that the RBI circular was unconstitutional," Nischal Shetty, CEO of WazirX, an Indian cryptocurrency exchange, tld news agency Reuters.
		+
		+	However, the industry still faces hurdles as a government panel, appointed to look into the matter, has recommended that India ought to ban all private cryptocurrencies. In July, the panel also recommended a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies.
		+
		+	The government though is yet to act on these recommendations and is yet to finalse regulations around cryptocurrencies.
		+
		+	On several occasions, the government along with the central bank, had cautioned the public about the risks of cryptocurrencies. If the government follows the panel's recommendations, it could signal the end of the road for these digital currencies in India.
		+
		+	(With Reuters inputs)
		+
		+	[[Category:Economy-Industry-Resources\|B
		+	CRYPTOCURRENCY: INDIA]]
		+	[[Category:India\|B
		+	CRYPTOCURRENCY: INDIA]]

	=Reason behind the boom=		=Reason behind the boom=

← Older revision		Revision as of 00:54, 11 September 2018
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	According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoins. Besides this, new bitcoins are created in a regular and limited numbers which are halved from time to time. The next halving will happen in the mid-2020.		According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoins. Besides this, new bitcoins are created in a regular and limited numbers which are halved from time to time. The next halving will happen in the mid-2020.
		+
		+	= Scams/ frauds=
		+	==Gujarat: 2016-18==
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F14&entity=Ar02507&sk=BA9ECB1E&mode=text Parth Shastri, Bitcoin fraud: How investors lost ₹22k cr, August 14, 2018: ''The Times of India'']
		+
		+	[[File: The Bitcoin scam of 2016-18 in Gujarat and elsewhere in India.jpg\|The Bitcoin scam of 2016-18 in Gujarat and elsewhere in India <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F14&entity=Ar02507&sk=BA9ECB1E&mode=text Parth Shastri, Bitcoin fraud: How investors lost ₹22k cr, August 14, 2018: ''The Times of India'']\|frame\|500px]]
		+
		+
		+	''BitConnect Promised 1% Daily Interest''
		+
		+	It was too good a deal — earn 1% daily interest and double your money in 100 days. Too good to be true, hordes of rich investors in Gujarat realised a year later when the BitConnect platform folded up after pocketing roughly Rs 22,000 crore of their money in Bitcoin.
		+
		+	For many, it was a double whammy after the jolt of demonetisation. In fact, the Bitcoin craze had started in the state as people looked for safe ways to launder their piles of black money after November 2016. “The transactions were anonymous, it did not require any proof and, best of all, it could be operated from anywhere in the world. A cryptocurrency boom started overnight,” Sunny Vaghela, CTO of an Ahmedabad-based IT firm, told TOI. Surat became the trade’s hub with numerous ‘equity brokers’, who juggled different cryptocurrencies for maximum profit.
		+
		+	Bloomberg also reported that most Google searches for laundering money in that period were made from Gujarat, and Indians were willing to pay up to 25% more for Bitcoin. Throughout 2017, Bitcoin gained value like nothing else. The price of one Bitcoin shot up from $900 to $20,000. It became a must-have asset. If you were greedy, you had to be invested in it.
		+
		+	While demand alone was driving up Bitcoin’s price, along came an offer that made holding it even more lucrative. BitConnect, a similar sounding but unrelated cryptocurrency platform, offered to pay 1% daily interest to Bitcoin owners, and more if they got other owners on board. Investors loaned their Bitcoin to BitConnect, which issued them its own token currency called BCC, and made all principal and interest payments in BCC as well.
		+
		+	It was a classic Ponzi scheme, and the fact that they were signing away their precious Bitcoin should have alarmed investors. Many experts had been calling Bit-Connect a scam from the beginning, but with the returns so high, investors kept their eyes tightly shut.
		+
		+	BitConnect’s scheme was simple. It had a fixed number of BCC ‘coins’. Their value increased with demand. Its sky-high interest rate kept pushing up demand, so the price went on rising until the securities boards of Texas and North Carolina ordered it to stop dealing in January.
		+
		+	“The investors got happy with notional gains. The coins, bought at $50-100, became worth $362 in a year,” said an investigator working on the case. But when the bubble burst on January 16 this year, BCC crashed to $2 overnight, and now it trades below half a dollar. BitConnect promptly repaid investors in practically worthless BCC, and walked away with their Bitcoin.
		+
		+	Altogether, BitConnect may have siphoned off more money than Nirav Modi, but police have not received many complaints, possibly because many of the investors used black money to buy Bitcoin. “So far, we have received complaints for cheating worth Rs 1.14 crore,” said Ashish Bhatia, DGP, CID (crime).
		+
		+	But some influential investors have tried squeezing out their money in unlawful ways. In March, Surat realtor Shailesh Bhatt complained that he was abducted by some policemen and made to transfer 176 Bitcoins from his digital wallet. About a dozen cops were arrested in connection with the conspiracy till July, and the name of former BJP MLA Nalin Kotadiya also cropped up in the investigation. Later, it was alleged that Bhatt himself had abducted a BitConnect promoter, Dhaval Mavani, and his employee Piyush Savaliya, to extort 2,256 Bitcoins. One of Bhatt’s alleged partners in crime, Kirit Paladiya, then doublecrossed him to get more than his fair share of the cryptocurrency ransom.

	=Views=		=Views=