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Can NRI`s Trade Cryptocurrency?

Cryptocurrency has become increasingly popular in recent years, and more and more people are looking for ways to get involved. Non-resident Indians (NRIs) are no exception. But can NRIs actually trade cryptocurrency? The answer is yes! There are a number of ways for NRIs to trade cryptocurrency, and this blog post will explore the different options available. 

We’ll look at the legalities of trading crypto for NRIs, as well as how to safely purchase it, store it, and transact with it. Read on to learn how you can get started trading crypto as an NRI today.

What is Cryptocurrency?

Cryptocurrency is a hot market right now, but it’s not just for the techies. Cryptocurrencies like Bitcoin and Ethereum have made it possible for anyone to invest in the growing market. But the question is: can non-U.S. citizens trade cryptocurrency? Yes, they can—and if you’re an NRI, you should. 

Can NRIs Trade Through Indian Cryptocurrency Platforms?

Yes, NRIs can trade through Indian cryptocurrency platforms. However, they need to be aware of the following:

  1. Cryptocurrency platforms are not regulated in India.
  2. There is no legal protection for investors in case of fraud or theft.
  3. Cryptocurrencies are not recognized as legal tender in India.
  4. Trading through an Indian cryptocurrency platform may violate FEMA regulations.

NRIs must do their due diligence before investing in any cryptocurrency platform. They should consult with a financial advisor to ensure that they understand the risks involved.

Transfer Of Bitcoins Between NRIs and Indian Residents

NRIs can trade cryptocurrency with Indian residents by transferring bitcoins between their respective wallets. To do so, both parties must have a bitcoin wallet and an account with a cryptocurrency exchange that supports peer-to-peer trading.

Once both parties have these things set up, the NRI will initiate the transfer of bitcoins from their wallet to the Indian resident’s wallet. The transaction will then be confirmed by the exchange and the bitcoins will be transferred.

The whole process usually takes less than 10 minutes and is a relatively simple way to trade cryptocurrency between NRIs and Indian residents.

Upcoming Avenues for Cryptocurrency Trading

Cryptocurrency trading is still in its infancy, and there are many different avenues that traders can explore. 

  • According to a 2019 Bloomberg report, the end-to-end encrypted messaging platform Whatsapp is planning to launch cryptocurrency transfers to allow NRIs to transfer money to their families back in India.  The digital currency expected to be launched by Whatsapp will be pegged to the U.S. Dollar. It will be centralized.
  • IBMC Financial Professionals Group, a financial consultancy firm based in UAE, has partnered with US Gold Currency and Block fills, allowing NRIs to buy digital gold assets. While US Gold Currency will issue the USG digital currency, Block fills will provide digital asset liquidity on a transactional platform.

Here are a few upcoming avenues for cryptocurrency trading:

  • Decentralized exchanges – Decentralized exchanges (DEXs) are peer-to-peer platforms that allow users to trade directly with each other without the need for a central authority. This type of exchange is often seen as more secure and private than traditional centralized exchanges, as there is no central point of control or hacks. DEXs are also usually faster and more efficient than centralized exchanges, as there is no need to go through a middleman.
  • Margin trading – Margin trading allows traders to borrow money from a broker in order to trade with leverage. This can be a risky way to trade, as losses can be magnified, but it can also lead to greater profits if trades are successful.
  • Futures contracts – Futures contracts are agreements to buy or sell an asset at a later date at a predetermined price. Cryptocurrency futures allow traders to speculate on the future price of digital assets without actually owning them.
  • Options – Options give traders the right (but not the obligation) to buy or sell an asset at a certain price within a certain timeframe. Like futures, options allow traders to speculate on the future price of digital assets without actually owning them.
  • Prediction markets – Prediction markets are a form of decentralized, peer-to-peer marketplaces that use a cryptocurrency to facilitate the trade of financial instruments. Prediction markets allow users to predict the future of events, such as political elections, sporting events, and economic trends.

Things to Remember

There are a few things to remember if you’re an NRI looking to trade cryptocurrency:

  • Cryptocurrency is still a relatively new asset class, so there is risk involved. Make sure you do your research and understand the risks before investing.
  • Cryptocurrencies are not regulated by governments like other financial assets, so be careful when choosing a broker or exchange.
  • Since cryptocurrencies are digital, they are subject to cyber security risks. Be sure to take measures to protect your digital assets.

Advantages

Yes, NRIs can trade cryptocurrency! Here are some of the advantages:

  • Cryptocurrency is a global market, so NRIs can trade it from anywhere in the world.
  • Cryptocurrency is a decentralized asset, so it is not subject to government regulation or control.
  • Cryptocurrency is a volatile asset, so traders can make a profit by correctly predicting price movements.
  • Many cryptocurrency exchanges offer leverage, which allows traders to magnify their profits.

Disadvantages

NRIs are not able to trade cryptocurrency on Indian exchanges.

This is because Indian exchanges like Zebpay, Unocoin, and Coinsecure do not allow NRIs to open accounts with them.

The reason for this is that the Reserve Bank of India (RBI) has not given its approval for cryptocurrencies yet.

This means that NRIs will have to find another way to trade cryptocurrencies, such as through foreign exchange or by using a peer-to-peer platform.

 

The Reserve Bank of India (RBI) has recently issued a warning against cryptocurrency trading, stating that it is a risky investment. However, this does not mean that Non-Resident Indians (NRIs) are not allowed to trade cryptocurrency.

There are many cryptocurrency exchanges that cater to NRIs, such as bitbns.com and unocoin.com. These exchanges allow NRIs to buy, sell, and trade cryptocurrencies with Indian rupees.

However, it is important to note that cryptocurrency trading is still a risky investment. The value of cryptocurrencies can fluctuate wildly, and there is always the possibility of losing your entire investment. Before investing in cryptocurrencies, be sure to do your research and understand the risks involved.