Cryptocurrencies are not yet fully regulated in India, although the government and the Reserve Bank of India (RBI) have taken some steps to address the use of digital currencies in the country.
In 2018, the RBI issued a circular prohibiting banks and financial institutions from providing services to businesses or individuals dealing in virtual currencies. This effectively made it illegal for Indian residents to buy or sell cryptocurrencies using the rupee or any regulated financial service.
However, in March 2020, the Supreme Court of India overturned the RBI's ban, stating that it was disproportionate and violated the fundamental rights of Indian citizens. This decision paved the way for the development of a regulatory framework for cryptocurrencies in India.
Since then, the government has been working on draft legislation to regulate the use of cryptocurrencies in the country. However, the process has been slow, and there is still no clear timeline for when these regulations will be finalized and implemented.
It is worth noting that while cryptocurrencies are not yet fully regulated in India, the government and regulatory bodies are actively working to address the issue and develop appropriate rules and regulations for their use.