The Curious Case of Cryptocurrency Trading in India: Regulatory and Taxation Challenges.

Cryptocurrency is a digital representation of value that is not a legal tender. It is a digital asset, sometimes also referred to as a crypto asset that works as a medium of exchange for goods and services between the parties who agree to use it. Strong encryption techniques are used to control how units of cryptocurrency are created and to verify transactions. Cryptocurrencies generally operate independently of a central bank, central authority or government. India ranks among the top five countries of the world from the perspective of share of currency held, which is at 44% of the world's share. Since the regulatory framework regarding cryptocurrencies in India is uncertain, this paper analyzes the taxation (or non-taxation) by considering them as goods and currency, and the major approaches currently prevalent across the world. The focus of this paper is to explain the legal aspects relating to cryptocurrencies and blockchain. [ABSTRACT FROM AUTHOR]