Hey Bollywood fans! Are NFTs legal in India?

The craze for non-fungible tokens (NFTs) in India is obvious after the fabulous response to auction of megastar Amitabh Bachchan’s NFT collection. The collection saw the highest-ever bid of more than 7 crore. However, NFTs are not for everyone, say experts. One of the biggest concerns is their legal status in India. “In India, NFTs are traded as cryptocurrencies, and all trading is currently taking place on crypto exchanges. There is no regulatory structure in India for cryptocurrencies, making NFTs considerably riskier,” says Himanshu Yadav, Founding Partner, Woodstock Fund. Unfortunately, NFTs dont have a separate legal framework in India either.

NFTs are crypto assets with a unique certificate of authenticity. This makes them rare and high-value digital assets. BeyondLife.club says artwork associated with an NFT is stored on a decentralised file system and gives the collector ownership of a unique collectible. It is also traceable on the blockchain, an immutable decentralised ledger of information.
There is a notion that NFTs are only a status symbol of the super-rich. This couldnt be further from truth. NFTs, as an emerging asset, are a handy investment. But Vikas Ahuja, CEO, Crosstower India and Member of BACC (Blockchain and Crypto Assets Council) advises investors to be thorough with their research before investing.