Crypto investors weigh options if virtual currencies get banned in India

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As the uncertainty grows around the future of virtual currencies, crypto investors have started weighing options for their existing investments.  This is because the government has listed Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in Parliament providing for the banning of all private cryptocurrencies. Currently, the existing laws are inadequate to deal with issues concerning them and RBI and SEBI do not have any legal framework to directly regulate cryptocurrencies.  Given its a peer to peer transaction, investors trade at their own risks in virtual currencies. Here are some of the options before 7-10 million crypto lovers if investing in virtual currencies get banned:

Sell and Exit It is not the first time crypto investors have to dilute their investments and dilute their crypto investments. In early 2018 RBI banned all banks from dealing with crypto exchanges which effectively led to closure of exchanges. A three months notice was given last time to liquidate their investments. The RBI ban was later lifted by the Supreme Court of India in March 2020. Currently, when Bitcoin is trading at all time high level of $50,000 experts say investors have been considering exiting cryptocurrencies and invest in other regulated asset classes.

Self Custody Wallets

You can consider transferring your cryptocurrencies in a hardware wallet. Hardware wallets is a type of Bitcoin wallet that stores cryptocurrencies in a hardware device. Some of the popular hardware wallets include Ledger, Trezor and KeepKey. How transfer is done? A public address is generated when the hardware wallet gets connected to a computer. The virtual currencies stored with the exchange can then be sent to this public address generated.

There are also international wallets-hot and cold- where you can transfer bitcoins or altcoins. Cold wallets operate offline and therefore they are protected against online hackers. Hot wallets are connected to the Internet and therefore they are at the greater security risk. Experts say always research and choose the wallet provider with good reputation.

Transfer Overseas

Experts say users can consider transferring cryptocurrencies to your relatives in countries where Bitcoin trading is allowed. But before gifting you have to also take into account the tax laws of the country, as the person receiving Bitcoin may have to pay taxes on the amount gifted or transferred.