Crypto Currency

[TN Rajendran]

Dear Experts,

Is Crypto-Currency allowed in India. One person wants to sell his crypto-currency holdings and will be getting equivalent INR in Cheque/transfer to his bank account. Is this legally allowed? If allowed, how could that money be accounted?

AI Summary

Crypto-currency regulation uncertain as banking-channel transactions remain constrained pending litigation and future rules.
Legality of selling crypto-currency for banked funds is unsettled: a central bank restriction has constrained banking-channel transactions and that restriction is subject to ongoing litigation; the government has represented that crypto-currency regulations are being drafted, so the legal position remains contingent on court outcome and future rules, and parties should monitor developments before completing or accounting for such transfers.