Legal Status of Cryptocurrency in India

Bitcoin is legal in India, but crypto businesses are restricted from using banks

  • Is holding Bitcoin legal in India?

    There are no guidelines by Ministry of Finance or the Reserve Bank of India (RBI) that say holding Bitcoin is illegal in India.

  • But I heard that the RBI made Bitcoin illegal. Is this true?

    This is false. The RBI themselves had said to the Supreme Court that Bitcoin is not banned in India on 21st January 2020

    The misconception that ‘Bitcoin is banned in India’ began in 2018, when RBI had released a circular saying that banks cannot be directly involved with crypto businesses. This only means that users cannot make direct payments to crypto businesses.

    Individuals are still allowed to invest, buy, and sell Bitcoin of their own accord.

  • If banks cannot associate with crypto businesses, how can I legally purchase cryptocurrencies?

    Users can still invest in Bitcoin legally using our USDT mechanism. USDT is a cryptocurrency linked to the price of the US dollar.

    Here’s how our USDT mechanism works:

    • You specify how much USDT you want
    • You will be matched with sellers
    • Pay the seller the required amount using UPI or IMPS
    • The USDT will be added to your wallet
    • This USDT can be used to purchase Bitcoin
    • Since this process does not involve any direct interaction between banks and Bitdroplet, this is not an illegal method.