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In today's blog post, we will look at the legal requirements for trading cryptoassets in India, which will be relevant for those intending to register an Indian crypto exchange.

Let's note right away: India is a complex jurisdiction in relation to crypto business. At the moment, there is uncertainty regarding the determination of the legal status of cryptoassets in the country.

Some sources report that the Indian authorities intend to return to a bill providing for a complete ban on the ownership and operation of cryptocurrencies. This is not a ban on banking services, but a full-fledged bill prohibiting the circulation of cryptocurrencies in the country. The document is still under discussion, but already now it creates difficulties in relation to the provision of services related to tokens.

Meanwhile, India has incredible perspectives in terms of crypto business development. Analysts at the venture capital company Jump Capital, based on a number of macroeconomic indicators, have identified a list of countries with the greatest potential for accepting Bitcoin and other cryptocurrencies. The top lines in it were occupied by the countries of Southeast Asia, Latin America, Turkey and India.

Regulation of crypto exchanges in India

While the new legislative restrictions are still under discussion, the market players are optimistic. Custodians of cryptoassets in India are not regulated, although their operations may be considered illegal after the adoption of the bill on virtual currencies. The bill will do much harm to the industry which has already been significantly weakened by previous prohibitive measures, experts say. The same situation is with broker-dealers of cryptoassets. Therefore, if you want to register a crypto exchange in India and provide services related to tokens, it is important to keep track of the current legal requirements in this area.

Important:

At the moment, foreign cryptocurrency exchanges are not subject to Indian laws. The exception is fiat currency exchange. 

Fiat currencies cannot be exchanged for crypto assets!

For entrepreneurs planning to register a crypto exchange in India, it is important to consider that in the absence of fiat currency exchange, investors can only make transactions with cryptoassets.

Final word

If you have developed a plan, part of which is to register an Indian crypto company, then you will not be able to do without prior professional advice regarding the current regulatory framework of the jurisdiction. Our advisors constantly monitor the situation and can answer all your questions in the format of an individual consultation. To sign up for a consultation on the regulation of cryptoassets in India, please fill out a quick contact form below.