In the past few years, cryptocurrency in India witnessed incredible growth. Despite the lack of regulations, the virtual assets amassed large-scale attention. The number of crypto investors in India exploded like anything. Moreover, with 10.07 crore investors, today, India stands as the top crypto investor in the world.
However, the struggle between cryptocurrency and India has been going on for a long time. It began in the year 2018 when the Reserve Bank of India decided to impose a blanket ban on cryptocurrencies. But after two years of toiling, the Supreme Court of India ruled out the RBI’s decision to ban cryptocurrencies and blockchain technology-based companies from accessing standard financial services.
In other words, cryptos came out of the ambit of the ban. Since then crypto investors in India have increased tremendously. The country became crypto crazy. As per experts, an outright ban is not a wise thing, Cryptocurrency paves the way for the future, and banning it completely may leave the nation behind in the growth race.
In wake of this, a lot of new regulations are proposed to be introduced in 2022. New policies will be introduced against bitcoin and other digital assets. The dramatic increase in BTC to INR exchange value and millennial investors has made lawmakers more cautious about how this unpredictable market can affect.
Therefore, new regulations are likely to come. So, if you are planning to buy bitcoin in India, here’s how you can stay prepared for upcoming regulations.
1. Focus on good record keeping:
Cryptocurrency investments are taxable. As such investors need to maintain sufficient record-keeping practices to establish their stance on tax returns.
To stay prepared for such a situation, you must focus on computing your profits and losses throughout the year. For people who use different exchanges and multiple wallets, this may seem complex and difficult. Therefore, it is better to keep all this sorted beforehand. Consider saving your transaction history related to digital assets for every three years and ensure to maintain clear transactions.
2. Use software tools to keep a check on transactions, calculate profit:
Using an efficacious portfolio management tool can help you keep a track of your transactions. By offering you access to comprehensive details, it can also help you maintain a tax profile for the stipulation of actual tax liability. Moreover, in that manner, you can also stay prepared for upcoming crypto regulations in India.
3. Stay updated with all regulations expected to be introduced:
Always keep a watch for the latest crypto headlines. This will keep you acquainted with what’s being talked about by lawmakers and what regulations are expected to come up in the next few years.
4. Check your current investments:
Review your current investments and accordingly determine where you might need new tools or strategies to adjust to new regulations. The sooner you do this, the more equipped you will be to handle thecrypto market transformations.
Hence, keep up with the latest trends and be prepared to undertake a continuous assessment to benefit from the changing policies of the crypto market.