Firstly, Please understand that the the cryptocurrencies are neither declared as illegal nor accepted as legal tenders by RBI. Secondly, clarification has been given by RBI that it has not given any authorization or license to any entities to operate or deal with Bitcoins or any virtual or digital currency. Along with that, RBI keeps creating alertness among people regarding the risks associated with cryptocurrencies.
The statement made by the finance minister of India was, "Our technical people are doing research on this topic in depth. I didn't say, Bitcoin is illegal, I said, it won't have a LEGAL TENDER in India."
Now the problem is, people tell others what they hear, actually they modify the information and tell the spiced up stories. The conclusion comes like this,
"Bhai Bitcoin mein mat invest kar, fraud hai woh, scam hai woh, illegal hai woh India mein!"
And the reality is, the misunderstood statement uttered out from that random person makes the listener insecure by assuming that Bitcoin is illegal in india. However, the truth is, there is NO LEGAL TENDER for the same.
So please understand, BITCOIN is NOT ILLEGAL. YOU CAN STILL HOLD IT AND DO TRANSACTIONS WITH IT. THE ONLY THING YOU MUST KNOW IS, YOU CAN'T BUY MAGGIE NOODLES FOR YOUR SUNDAY BREAKFAST FROM A GROCERY SHOP WITH BITCOINS.
So keep enjoying using Crypto-assets. Be it in any Indian Cryptocurrency Exchange (Like BTCMonk, Zebpay, Koinex or Unocoin) or any US/CHINA based (Like Binance, Bittrex or Poloniex) or other International Cryptocurrency exchange. You can still trade and do whatever you want with your crypto-assets for making financial benefits as they can be used globally, if not that profitably in India currently.
Source: http://www.techcryptoguru.com/is-trading-in-bitcoins-illegal-in-india/
