As of my last knowledge update in September 2021, the legality of cryptocurrency trading in India was a topic of debate and regulatory uncertainty.
The situation may have evolved since then, so it's essential to check the latest updates from reliable sources or consult legal experts for the most current information.
In 2018, the Reserve Bank of India (RBI) had imposed a banking ban on cryptocurrency-related transactions, effectively prohibiting banks from providing services to cryptocurrency exchanges and users.
However, in March 2020, the Supreme Court of India lifted the ban imposed by the RBI, allowing cryptocurrency trading to resume in the country.
This decision was seen as a positive development for the crypto industry in India.
Subsequently, there were reports of various government bodies and committees working on potential regulations for cryptocurrencies.
The government has been discussing the possibility of introducing a cryptocurrency bill, but the specifics and outcomes of these discussions were unclear as of my last update.