Digital assets will have grown significantly in 2021. People and businesses have become more aware of the benefits of investing in cryptocurrencies as a result of this increase. Furthermore, this has prompted a number of nations to enact legislation aimed at promoting a more equitable trade environment. Asian governments have also tended to embrace international norms and build a regulatory framework for cryptocurrencies.

A Brief Overview of the Past

Many governments in the Asian area have been debating whether or not to govern cryptocurrencies for a significant amount of time. Examples include the central bank of India’s decision, made in 2018, to prohibit the use of cryptocurrency. However, in March 2020, the country’s Supreme Court overturned this decision, and cryptocurrencies were once again made legal in India. Since then, there has been a great deal of discourse on the subject, with little real progress being made.

In a similar vein, the country of Bangladesh has taken a tough stance regarding cryptocurrencies. As of 2017, the nation’s central bank said that cryptocurrencies were prohibited in the country. It has been alleged that the use of cryptocurrencies is a violation of the fundamental laws against money laundering and terrorist funding, among other things. The country’s attitude toward blockchain transactions changed in 2020, when Bangladesh said that it was eager to embrace the technology because of the expected advantages.

Status as of now:

Singapore is a Southeast Asian nation that has welcomed the crypto industry and is adopting guidelines at the moment. Singapore currently has more than 230 blockchain groups that are entirely self-funded. When it comes to cryptocurrency transactions, storage, or exchanges, the Payment Service Act (PSA) stipulates that an organization must obtain a license in order to do so.

For the PSA to be more effective in mitigating financial risks, the Monetary Authority of Singapore (MAS) has updated it to keep up with the rapidly expanding evolution of the cryptocurrency business and to ensure that it meets international regulations.

In Malaysia, all cryptocurrency transactions must be in compliance with the Securities Commission Malaysia (SC Malaysia) and the Bank Negara Malaysia (BNM). For the same reason, the Securities and Commodities Commission of Malaysia has been vigilant in regulating ICOs (Initial Coin Offerings) to encourage fair trade. After seeing a spike in interest in the cryptocurrency market, the Philippines’ central bank, the BSP, has introduced new rules to make it easier for people to access financial services using digital assets. In addition to the two-fold ICO examination, certain further restrictions were implemented afterwards.

Seven guidelines for bitcoin trading for new investors in Asia and the rest of the world

  • Maintain an up-to-date knowledge of world events

Despite the fact that you are purchasing and selling cryptocurrency in India, the cryptocurrency industry is spread all over the globe. Any worldwide event has the potential to have an influence on pricing, so it is important to keep up with what is occurring in major markets such as the United States, Singapore, and Europe.

“The crypto tax in the United States was one of the factors that contributed to the decline in cryptocurrency values in May,” says Manish P. Hingar, Founder of Fintoo. An investor that is on the case will avoid being caught in a bad situation. It helps because cryptocurrency trading is available 24 hours a day, seven days a week, allowing one to act quickly, as opposed to stock markets, where one must wait for trading to begin the next day.

  • Don’t take action based on tips without first confirming them

The cryptographic realm is plagued by a significant scarcity of reliable information. Investors rely heavily on unconfirmed information obtained via social media platforms. In order to prove their correctness, self-styled crypto analysts form WhatsApp groups that include their associates who endorse their accuracy.

This group of experts preys on unsuspecting investors, first charging them a fee for their recommendations and then employing them in their pump-and-dump operations.’s Managing DirectorRaj Khosla advises that investors should always check facts before making a decision to invest. Consider the coin’s market capitalization and trading volumes. According to him, “a low market capitalization and tiny daily volumes are apparent warning signals.”

  • Don’t risk a lot of money on a single wager

The incredible profits achieved by several cryptocurrencies over the last year are simply mouth-watering. Six months after making a Rs 10,000 investment in Dogecoin, it is currently worth Rs 5.75 lakh. However, don’t get carried away by the figures on this page. The co-founder of Globalise, Vineet Nanda, advises investors to “invest only what you are prepared to lose.” Even if your risk tolerance is high, you should start with a tiny amount of money.

Don’t invest more than 2 percent of your whole portfolio in cryptocurrencies, “recommends” Vikram Subburaj, CEO of Giottus Cryptocurrency Exchange, in a statement. Prior to allocating additional funds, you should familiarize yourself with the arena by reading up on each currency, determining its worth and future potential before allocating more funds.

  • Concentrate on blue-chip stocks

The crypto market, like the stock market, includes bluechips, mid-caps, and penny coins, much like the stock market. It is important not to get enticed into purchasing obscure coins just because you may obtain a large number of them at a cheap price. Larger coins may be more expensive, but they are more stable. It doesn’t matter how much you spend since you may purchase in fractions and save money.

Bitcoin is the bluechip of the cryptocurrency world, and it is responsible for driving general market sentiment. As Gaurav Garg, Capital Via’s Head of Research advises, “concentrate on the bluechip currencies like Bitcoin and Ethereum while putting a portion of your money into developing coins such as Dogecoin and Matic.” According to Nanda of Globalise, currencies that are widely owned and have a huge market capitalization are less likely to be manipulated than coins that are held tightly by a small number of individuals.

  • Make use of a reliable platform

In India, the cryptocurrency industry is unregulated, and new businesses are springing up on a daily basis. Despite the fact that the Supreme Court overturned the Reserve Bank of India’s prohibition on cryptocurrencies and the government has indicated that it would take a measured approach to regulating the market, investors must exercise caution when selecting an intermediary. According to Vineet Nanda, Co-founder of Globalise, “Invest via an established and trustworthy platform so that your money does not get stranded if there is a regulatory setback or the promoter firm falls under.” Keep in mind that investing via an international platform may require higher compliance on the tax front than investing domestically.

  • Prepare for a period of tremendous instability

It is the most effective method of learning about cryptocurrencies via investment. However, it is a high-risk, high-reward game, and you must be able to tolerate a high level of volatility in order to succeed. A drop of 70–80 percent in a single day is also a distinct possibility, as demonstrated by the May collapse.Remember that even a bluechip like bitcoin has lost 48% of its value since reaching a high of Rs 50 lakh in April.of FinFix Research and Analytics, Prableen Bajpai, cautions investors to enter the market only if they are prepared to withstand significant fluctuations and the ramifications of an investment gone wrong.

  • Don’t forget about the tax

Last but not least, don’t forget about the taxes that are due on the profits made through cryptocurrency trading. Although cryptocurrencies are not directly listed in the Income Tax Legislation, all income from any source, regardless of the form in which it is received, is taxable unless specifically exempted under the act, according to Archit Gupta, CEO of tax filing site Cleartax. Because cryptocurrency is not recognized as money by the Reserve Bank of India, it must be regarded as a capital asset. Homi Mistry, a partner at Deloitte India, believes that although there is no court precedent, it may be presumed that cryptos will be recognized as capital assets in the country. As a result, short-term profits will be considered income and taxed at regular rates, whereas long-term gains will be taxed at a rate of 20% after indexation.Depending on the volume and frequency of trading, “a significant amount of revenue may be considered commercial income,” says Mistry. “A lot relies on the volume and frequency of trading.”

Wrapping up

The use of cryptocurrency is exploding around the world. Because of their digital nature, it has become necessary to regulate, authenticate, and safeguard these transactions. Cryptocurrency is an area where Asian nations are always at odds. Cryptocurrencies are becoming more popular in Asia, despite the fact that several nations have prohibited or restricted their use.

Also Read: Effects Of Cryptocurrencies On Local Currencies