From an outright ban on cryptocurrencies in 2016 to an upcoming Bill for regulations. Over the past few years the Government's stance on digital assets has changed. Currently, there is no regulation or any ban on the use of Cryptocurrencies in the Country. The RBI's order banning banks from supporting crypto transaction, was reversed by the Supreme Court order of March 2020. The cryptocurrencies bill, 2021 seeks to create facilitative framework for creation of the digital currency to be issued by the RBI. Budget 2022 levies 30% tax and TDS on Cryptocurrency assets.

The Journey Of Crypto Currency In India:

The journey of cryptocurrencies in India hasn't been short of a roller coaster ride. From facing a ban to now being on the verge of Strict regulations, the virtual assets has faced a series of threats.

2008 - Inception of cryptocurrencies
The journey of Cryptocurrency started in 2008 by publication of a paper titled "Bitcoin: A Peer to Peer Electronic cash system" by Mr. Satoshi Nakamoto.

2010 - First Sale Using Crypto
After 2008, two years later it means in 2010, using of bitcoin took place. In that year for two pizzas someone exchange 10,000 bitcoins. Form there the cash value of cryptocurrencies started first time. After that Namecoin, Litecoin and Swiftcoin such currencies appears and then digital asset starting gaining traction.

2013: RBI Issues First Circular Regarding Cryptocurrencies
As like other countries in India also cryptocurrency investment picked up and too much exchanges of different crypto currencies such as Pocket Bits, Zebpay, Koinex, Unocoin and Coinsecure began bouncing up, so RBI issued a circular warning users of the potential security-related risks relating to the use of this virtual currencies in the year 2013.

2016-2018: Demonetisation and RBI's Banking Ban on Crypto
The Reserve Bank of India (RBI) recently issued a circular banning banks from providing financial services to any individual or business dealing with cryptocurrencies. This ban will come into effect from 5th January 2018. The banking ban is a bold step by the RBI to regulate the crypto space in the country. The crypto space in India has been facing a lot of regulations and a banking ban is one more step in that direction.

Demonetisation and the RBI's Banking Ban on Crypto:
The year 2018 has been a roller-coaster ride for the cryptocurrency market. The prices of cryptocurrencies plummeted to their lowest levels in a year on 8 November 2018, due to the prevalence of fear caused by the sudden cancellation of the currency exchange scheme, called "demonetisation". A day later, the Reserve Bank of India (RBI) issued a notification banning all financial institutions in India from providing services to cryptocurrency exchanges and traders. This effectively shut down trade in the Indian cryptocurrency market.

The demonetisation drive called 'Operation Clean Money' has resulted in the banning of old Rs. 500 and Rs. 1000 notes as legal tender. However, the move has also led to many people turning to cryptocurrency as an alternative to fiat.

The Reserve Bank of India (RBI) has advised banks and financial institutions across the country to stop providing services to customers wanting to purchase, trade, and/or mine cryptocurrencies. This move comes after the government's demonetisation program, which scrapped 500 and 1,000 rupee notes. The RBI has also asked banks to cancel all current and future loans they have extended to individuals and businesses involved in cryptocurrencies. This has caused the value of certain cryptocurrencies to plummet.

The Reserve Bank of India's (RBI) ban on banks from providing services to crypto businesses and individuals has had a significant impact on the industry. The ban has also been a blow to the industry at a time when demonetisation was already causing chaos. However, the crypto industry is not ready to lie down and surrender. The industry is now turning to the courts to get the ban revoked.

November 2018: #IndiaWantsCrypto

On 1st November 2018, ten years after Nakamoto's paper, Nischal Shetty, Founder of WazirX, started the #IndiaWantsCrypto campaign for the positive regulation of crypto in India. INDIA WANTS CRYPTO. The most populous country in the world is set to make its mark on the cryptocurrency industry. The country's central bank, the Reserve Bank of India (RBI), has revealed that it is working toward creating its own digital currency. The bank has reportedly been in talks with local fintech companies to create the crypto, which would be used to "provide financial services to the unbanked and under-banked."

The country is on the verge of a cryptocurrency revolution. The government has already taken steps to make it easier for people to buy and trade cryptocurrencies, and it has also launched its own cryptocurrency, the Indian rupee coin (or "rupay"). The country is expected to become a major center for cryptocurrency trading, with the potential to become the world's largest trading market for digital coins. Cryptocurrencies are still in their early days, and the Indian government is making the most of this opportunity to bring in regulations and provide support to a new industry that could transform the country's economy.

India's central bank, the Reserve Bank of India, has reportedly issued a warning to the country's banks that they should not provide services to cryptocurrency companies. The RBI issued a circular to its banks, instructing them that they should not provide banking services to entities dealing with cryptocurrencies, such as exchanges. The circular, which has been leaked to the media, also cautions banks to be on the lookout for suspicious Initial Coin Offerings (ICOs), which may be used to launder money or to fund terrorism. The RBI has also asked banks to report to the government any entity that could be a threat to the financial system.

India is on a mission to be the world's largest cryptocurrency market. The country is taking steps to boost cryptocurrency adoption, including a crackdown on illegal initial coin offerings and a friendly regulatory environment for crypto businesses.

On the heels of a series of high-profile hacks and fraudulent cryptocurrency investments, the Indian government is reportedly working on a plan to ban cryptocurrency trading in the country. The proposed ban would make India one of the largest countries in the world to completely outlaw crypto trading. The news comes just months after the country's central bank issued a notice cautioning investors against the risks of digital currencies.

March 2020: Supreme Court Strikes Down the Crypto Banking Ban

The Supreme Court of India has struck down a government order that had banned banks in the country from providing services to cryptocurrency companies. The order had placed a blanket ban on the banking sector providing services to crypto businesses, effectively rendering most cryptocurrency exchanges illegal. The Supreme Court passed a split verdict on the case, with five of the nine justices ruling that the blanket ban was unconstitutional, while the other four justices disagreed. The Supreme Court has now set aside the banking ban and has asked the government to come up with a special law to regulate cryptocurrency exchanges.

The Supreme Court of India has ruled that the country's banking ban on crypto businesses is unconstitutional. The ruling was made in response to an appeal filed by the Reserve Bank of India (RBI), which had been attempting to get a ban on crypto banking lifted. The court has now ruled that the banking ban is unconstitutional, as it violates the right to free trade guaranteed under the Indian constitution. The court has also directed the RBI to allow entities that were banned from engaging in banking activities to reopen accounts that had been previously closed.

The Supreme Court of India has ruled that the government may not enforce a ban on banks providing services to cryptocurrency businesses. The court's decision is a major setback for the Indian government, which had hoped to use the banking ban as a way to reduce the appeal of cryptocurrencies. The court ruled that the government may not revoke the licenses of banks that have already provided services to cryptocurrency companies. The government had argued that the ban was necessary to protect the financial system from the risks of crypto trading, but the Supreme Court disagreed.

India's Supreme Court has ruled that the government's ban on the banking operations of cryptocurrency companies was unconstitutional. The court ruled that the government's blanket ban on all cryptocurrency-related activities was too broad and needed to be revised. The Supreme Court order came just two months after the country's top court upheld the ban. The banking ban was one of the first major actions taken by the Indian government to regulate the cryptocurrency industry.

The Supreme Court of India has struck down a controversial banking regulation that had banned banks from providing services to cryptocurrency companies. The court ruled that the provision, which was added to India's Information Technology Act in 2017, was unconstitutional. The regulation had forced crypto companies to seek banking services from associate banks, which significantly increased their costs. The Supreme Court's decision is a major victory for the cryptocurrency industry in the country, which has been operating in legal uncertainty since the banking regulation was enacted.

2021: Announcement of Crypto Bill

In 2021, Congress passed a bill to officially recognize cryptocurrencies as a form of legal tender. This was a long time coming. For years, governments and private institutions alike had quietly accepted cryptocurrencies as legitimate forms of payment. The passage of the Crypto Bill was a major milestone for the industry.

The Indian government has announced an initiative to regulate cryptocurrencies. The initiative, which will be rolled out in a phased manner over the next two years, will be announced during a visit by Indian Prime Minister Narendra Modi to the United States

2022: New law on Cryptocurrency

The Union Budget for the year 2022-23 had proposed to tax crypto assets at a rate of 30 per cent, effective from April 1, 2022. The government had also announced a two-tier treatment for crypto assets, which would be taxed at the rate of 10 per cent. The remaining crypto assets would be taxed at a rate of 30 per cent. The Union Budget for the year 2022-23 also proposed to exempt existing savings in crypto assets from taxation. It also proposed 1 per cent TDS on payments towards virtual assets beyond Rs 10,000 in a year and taxation of such gifts in the hands of recipients. The TDS provision will come to effect from July 1.

India is at a crossroads. One path prioritizes protecting consumers and the financial system from the risks of crypto assets, resulting in a prohibition. The other path prioritizes supporting the growth of a vibrant crypto ecosystem that can create jobs, promote innovation, and enhance delivery of services to citizens.

The Indian government is taking a closer look at cryptocurrencies, with a focus on their legality and regulation. In a hearing of parliament's committee on economic affairs on 18 April, the RBI was asked how it planned to regulate cryptocurrencies. The central bank gave a mixed response, with some officials favouring regulation and others preferring a prohibition. Even so, the RBI's position is largely in line with the central bank in other countries, which have taken a similar approach of prohibition and regulation.

Importance of Cryptocurrencies:

Cryptocurrencies have become a part of our everyday lives. They have been a major investment for many people, and have been growing rapidly. The number of people investing in cryptocurrencies has increased significantly in the past few years, and this is likely to continue. This growth is exciting news for the space, and it means that there is more room for growth.
The Indian government has recently taken steps to regulate the country's booming cryptocurrency market.

The crackdown, which is expected to further dampen investor enthusiasm, is an attempt to rein in the bearish market sentiment that has gripped India in the last few months. However, the move will also prevent fraudsters and money launderers from taking advantage of the ecosystem to the detriment of the long term health of the market. In this article, we look at the importance of cryptocurrencies to India's economic growth and their potential to transform the country's financial landscape.

What can be allowed and what may not be:
The Indian government has taken a number of steps to regulate cryptocurrencies in the country. First, the government issued a notice in February 2018, which defined cryptocurrencies as "legal tender" and demanded that all exchanges register with the Reserve Bank of India (RBI) as per the provisions of the RBI's Prevention of Money Laundering (Maintenance of Records of Transactions and other Provisions) Rules, 2005. The RBI also mandated that all financial institutions register with it to conduct cryptocurrency transactions. In April 2018, the government had also directed the RBI to study the measures that can be taken to regulate cryptocurrencies in the country.

Cryptocurrency is a growing phenomenon in India, but the same cannot be said about regulation. While the Reserve Bank of India has cautioned users, traders, and investors against 'possible Ponzi scheme' and 'money-laundering' transactions, there is no legal framework in place to regulate the cryptocurrency sector in India. This has created a regulatory vacuum, which is being exploited by intermediaries with dubious intentions. In the absence of clear framework, the cryptocurrency landscape in India is being shaped by a complex web of regulations and guidelines, some of which are contradictory, others of which are in the process of being formulated.

India has a difficult time figuring out how to regulate cryptocurrencies. In the past, the government has shut down exchanges and arrested people for using them for illegal activities. But the country's recent decision to allow crypto exchanges to operate within the country shows that the government is starting to understand their potential. The government is also starting to realize that cryptocurrencies are used for more than just illegal activities.

India has been struggling to come to terms with the disruptive technology of cryptocurrency, ever since it was introduced. The Reserve Bank of India (RBI) has been a long-time opponent of the crypto space and has been on a drive to regulate it. The RBI has been issuing warnings on the risks of investing in cryptocurrencies, without specifying any actions that needed to be taken by banks and other financial institutions. The RBI has also been making statements to the effect that it will not tolerate fraud and money laundering using the blockchain, which has led to a slowdown in the crypto space in India.

Legal Issues of Cryptocurrencies

In the past few years, cryptocurrencies have soared from obscurity to become among the most talked about innovations in finance. From bitcoin to ethereum, the market is full of exciting new coins and tokens. But as exciting as it is to invest in crypto, it is also important to understand the legal issues involved with cryptocurrencies. This article will provide a high-level overview of the legal issues associated with cryptocurrencies, including liability for online cryptocurrency exchanges and ICOs, tax issues, and regulatory issues.

There are legal issues of cryptocurrencies that need to be understood. The first and foremost is that cryptocurrencies are not regulated by the government. This means that cryptocurrencies have no legal protections and cannot be held accountable for any wrongdoings. The lack of legal protections means that cryptocurrencies cannot be used in place of legal tender.
The legal issues of cryptocurrencies and the regulatory environment in which they operate are of great concern to investors and market participants. This paper attempts to provide an insight into the legal issues related to cryptocurrencies and the regulatory landscape in which they operate. In keeping with the traditional legal definitions of currency and money, the Reserve Bank of India (RBI) has classified cryptocurrencies as a commodity. The legal status of cryptocurrencies is governed by the laws of the respective countries.

The global financial crisis of 2008 and the subsequent Great Recession profoundly impacted the legal landscape. One of the many casualties of the crisis was the perceived safety of "bank deposits." The vast majority of the global financial system is based on the belief that a bank deposit is a bank deposit is a bank deposit. This idea is so ingrained in the financial system that it is often referred to as the "too-big-to-fail doctrine."

Over the past 10 years, the crypto currency ecosystem has grown exponentially. This ecosystem has been shaped by complex tax and regulatory issues which have had a significant impact on the financial landscape of the ecosystem as a whole. The complexity of the regulatory framework in the ecosystem has presented a challenge for both lawmakers and the crypto community at large. However, the complex financial landscape of the ecosystem has also presented a unique opportunity for lawmakers to make a positive impact on the ecosystem by providing regulatory clarity and certainty for the industry.

The world of crypto currency is a remarkable one. It has allowed people to take control of their money and become their own bank, providing them with a sense of financial freedom like never before. But it has also come with its fair share of challenges, not least of which is the complex web of tax and regulatory requirements that currently exist in the ecosystem. This has made it difficult for many people to fully realize the potential benefits of crypto, instead feeling like they're operating in a regulatory grey area.

The regulatory landscape for the crypto economy is complex and ever-changing. The crypto ecosystem spans a wide range of regulatory regimes, including those of currencies that are not recognized in any country, the financial regulatory regimes of countries where crypto is a small subset of the financial system, and the securities regulatory regimes of countries where crypto is a relatively large part of the financial system. The regulatory framework for crypto is also evolving at a rapid pace. In the United States, for example, Congress has passed laws to provide a legal foundation for crypto, and regulators have also passed a series of regulations to provide a regulatory framework for crypto.

Today, the cryptocurrency ecosystem is defined by the often uneasy coexistence of traditional finance and the myriad of novel crypto currencies and tokens. The field is ripe with opportunity, but is also fraught with uncertainty. One of the primary reasons for this uncertainty is the regulatory landscape in which the ecosystem operates. Since the beginning of 2018, regulators in the United States and abroad have stepped up their efforts to understand and regulate the crypto currency ecosystem.

The crypto currency ecosystem has been in a state of flux in recent months. Bitcoin has experienced a roller coaster ride in terms of price, with its value declining significantly in recent weeks. This has led to uncertainty among investors, with many questioning whether they should invest in crypto currencies at all. At the same time, regulators have been stepping up their efforts to provide regulatory oversight in a bid to protect investors and ensure that the crypto currency ecosystem is not used for illicit purposes.

Regulation of the Crypto-Economy: Managing Risks, Challenges and Regulatory Uncertainty

The classification of cryptocurrencies as securities has been a controversial topic within the investment community. While many believe that the SEC chairman, Jay Clayton, has been too strict in his definition of a security, others have argued that the classification of cryptocurrencies as securities is justified. In May 2017, the SEC chairman mentioned that the term coin or token does not circumvent the fact that capital is eventually raised from the public, classifying it as a security and not a currency. This is a controversial statement because it has caused a significant amount of uncertainty among cryptocurrency investors.

The growing popularity of cryptocurrencies has brought with it a host of regulatory questions. One of the most pressing is whether the primary function of these new instruments is as a currency or as an investment. The answer has significant implications for how they are classified and regulated: as a currency, cryptocurrencies would fall under the purview of the Federal Reserve; as an investment, they would come under the authority of the Securities and Exchange Commission. The chairman of the SEC, Jay Clayton, has stated that the "label" or "style" of a coin or token does not circumvent the fact that it is capital being raised from the public and is therefore a security, regardless of its name or purpose (Roberts 2018).

In a world where cryptocurrencies are increasingly accepted as a means of exchange and store of value, the crypto-economy is evolving rapidly. While this new economy has brought with it many benefits for consumers and merchants alike, it has also introduced new risks, challenges, and regulatory uncertainty. This paper will explore the nature of these risks and challenges, as well as provide a framework for how regulators can best approach them in the future. The paper will begin by defining what is meant by the term "crypto-economy," and will provide a high-level overview of the core components of the crypto-economy, including cryptocurrency, block chain, and crypto-asset.

The rapid growth of cryptocurrencies and blockchain-based applications has created a new landscape for financial markets. These innovative technologies have the potential to reduce the costs of financial services, increase the efficiency of markets, and promote financial inclusion. At the same time, they have also introduced new risks and regulatory challenges. This paper will provide an overview of current U.S. regulatory responses to the cryptocurrency and block chain ecosystem, with an eye towards identifying the main risks, challenges, and uncertainties facing regulators.

When cryptocurrencies first emerged, they were seen as a technological marvel, a way to transfer money around the world without the need for a central authority. But over time, the landscape has evolved. Today, crypto-assets come with risk and reward, and they are playing an ever- larger role in the global economy. This chapter will explore the regulatory landscape, and discuss the challenges and opportunities facing regulators as they manage the Crypto-Economy.

The crypto-economy is a new economy that uses block chain technology to power digital assets and decentralized applications. The crypto-economy is still in its infancy, but it has the ability to fundamentally change the global economy. In this paper, we discuss the current state of the crypto-economy, its risks, and the regulatory challenges facing regulators and other stakeholders as the crypto-economy continues to grow. We conclude with some suggestions for managing these risks, challenges, and regulatory uncertainty.

Crypto-assets, such as Bitcoin and Ethereum, have captured the public imagination. Through their use in financial products such as cryptocurrency wallets and initial coin offerings, block chain-based technologies have the potential to make financial systems more efficient and secure. However, the crypto-economy is also subject to risks, including the potential for asset price bubbles and market crashes. The Federal Reserve, in collaboration with other regulators, has begun to examine how to prudently manage these risks, including by developing regulatory guidelines for crypto-asset markets.

How Budget 2022 will hurt new investor

In a panel discussion on the proposed tax on cryptocurrencies and other digital assets, the experts welcomed the move but raised a number of concerns on its impact on the industry. The measures were announced by Finance Minister Mr. Arun Jaitley in the budget for the financial year 2019-20. The Finance Minister also said that the government will identify the legal and illegal entities operating in the crypto space and will take necessary steps to curb the menace of black money, the minister said. The panelists discussed the impact of the tax on various sectors of the economy such as technology, financial services and the trading volume of cryptocurrencies.

The finance minister's announcement to tax crypto transactions and other virtual assets, including bitcoin and ethereum, has been met with mixed reactions from the industry. On July 10, Finance Minister Arun Jaitley announced that the government will tax 30% of the income generated from cryptocurrencies and other virtual assets. The announcement came after the Supreme Court ruled that cryptocurrencies are not legal tender. While the announcement is seen as a step in the right direction, it has also raised concerns among the industry.

The budget announcement on Friday has caused a lot of excitement in the crypto industry. It was welcomed by some, while others raised concerns over its impact on the industry. Explaining the government's decision, experts said that the move will help curb speculation in the crypto market and will instead encourage new investors to invest in the industry. This is because the tax is only applicable on the income from crypto, not on the investments themselves.

The budget announced a 30% tax on income from cryptocurrency and other virtual assets, which came as a surprise to many. While some hailed the move as a step in the right direction, others were worried about its impact on the industry. The experts in the panel discussion welcomed the news, but raised a number of concerns on its impact on the industry. The crypto industry has been facing a lot of criticism since the beginning of the year for failing to deliver on its promises.

The budget is a slap in the face for the crypto community, which has been short-changed by the government for years. The current tax regime is a significant setback for new investors who were hoping to take advantage of the market. It will also have a negative impact on the economy by stifling economic activity and preventing the government from raising much-needed revenue. It seems like only a few insiders have been able to build wealth through crypto investments, while the rest of the nation has been left out.
Written Sidhartha Mohapatra, 4th year, KIIT School of Law, Odisha