The student, Sahil Shah, says he traded four bitcoins which he purchased at a cost of ₹70,000 each (approx. $1100) before flipping it for ₹220,000 (approx. $3,400) each. Buying bitcoin on Indian exchanges came at a premium, with the cost of one bitcoin through Unocoin, India’s leading exchange, hitting an all-time high of ₹230,598 or $3572. An $850 premium compared to bitcoin prices on USD Markets.
Indian authorities are currently in the process of determining the legal and regulatory future of bitcoin in the country. India’s Finance Ministry (FinMin) established an inter-governmental committee to study a framework for virtual currencies in March. In May, the FinMin opened itself for suggestions from the public. A fleeting glance through the comments show a near unanimous call for bitcoin to be legalized as the country embraces digital payments following last year’s controversial demonetization drive.
Despite calls against its legalization by a smattering of politicians, India’s government – which is looking at the regulatory paths chosen by countries like Japan and the United States – is by most accounts set to regulate bitcoin and tax adopters in the country.