India’s online casinos have always faced the issue of following RBI rules. If a casino accepts payment from an Indian bank account, it must pay taxes on that money to the appropriate government agency.
However, the government has announced that they are exempting crypto transactions from taxation as long as they are made in the form of cryptocurrency and not fiat currency. This is because transactions performed in cryptocurrency do not leave a paper trail that can be traced back to the transaction, which prevents tax collection agencies from determining how much tax taxes the casino owes on its transactions.
Casinos that accept crypto payments may now reduce their operating costs thanks to this rule change, which could give them more money to use on their services and make them more competitive with other casinos. This is why when you play in 10CRIC Bitcoin Casino, you will have bigger benefits than other casinos.
In an attempt to attract more players, online casinos in India are now exempting cryptocurrencies.
Cryptocurrencies aren’t legal tender in India, but the government has previously maintained that they’re not illegal, either. However, they haven’t issued any regulatory guidance on them. That said, India’s central bank has banned financial institutions from dealing with crypto exchanges and companies offering crypto services.
The state moved to exempt cryptocurrencies of Sikkim, which declared that it would accept crypto as a valid payment method for online gambling sites licensed to operate within its borders.
The exemption is part of Sikkim’s broader goal to become a blockchain hub for companies seeking to develop and test their products and services in a supportive environment. This is part of a greater effort that began last year when the state announced an intent to use blockchain for its land registry system.
Besides Sikkim, two other jurisdictions in India have been friendly toward crypto: Jammu & Kashmir and Andhra Pradesh. However, they haven’t yet passed regulations or laws pertaining to them—they’re just trying to figure out how best to use certain technologies like blockchain.
Since 2014, India’s online casinos have been subject to the Unlawful Activities (Prevention) Act. This requires Indian businesses to comply with strict know-your-customer (KYC) rules and submit to police interviews and audits if they want to continue operating. However, with the recent passage of an amendment to this Act, these casinos will now be exempt from such strict oversight.
Cryptocurrency is a new and somewhat controversial method of transferring money between individuals and businesses. Since businesses and users can remain anonymous while using it, cryptocurrency has become especially popular in India’s online gambling industry because it allows them to circumvent its KYC laws without being caught by the police.
However, with the new amendment passed in late October 2017, the government has explicitly designated cryptocurrency as a legal payment method for all purposes. This means that online casino operators can now deal in cryptocurrencies without having to worry about being caught or punished for violating anti-gambling laws.
What is the Current State of Cryptocurrency in India?
It is no secret that India is one of the largest markets for cryptocurrency globally, but it is also one of the most difficult places to access cryptocurrency. Most exchanges in India have banned their citizens from trading with cryptocurrencies, making it almost impossible to do so.
The latest price of Bitcoin (BTC) in India is approximately $36000 per BTC, and this price fluctuates with the rest of the world’s prices. In other words, people are paying a steep premium for bitcoins here in India. This gap between the local and global prices will only increase as time goes on as more companies ban cryptocurrency trading.