[2013-27-12] India cracks down on bitcoin exchange - page 2.

bitgold

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Quote from: bryant.coleman on December 28, 2013, 10:39:56 AM

Quote from: seriouscoin on December 28, 2013, 10:05:48 AM

Not if the citizens keep their life saving in BTC..... What the fck can they do? order to pay in ruppees? Good luck with that....

I honestly hope the Indians will be smart about this.

This is going to be their modus operandi:

1. First they will arrest the exchange owner. Then they will extract all the trade logs, complete with the Bitcoin wallet ids and linked bank accounts.

2. They will calculate how much BTC was bought / sold by each of the users.

3. Since they now have the bank accounts of the users, the authorities will contact them and ask them to pay VAT (can be 12.5% or can be 20%) + penalty for their purchases and Short Term Caps Gains (30%) + Penalty for gains from sales.

4. If you don't pay the penalty, they will seize your assets.

Sounds like straightly coming from Nazi's playbook.

What a shame for a "democratic" regime.

Thank God for: a) I am not a citizen of that country, b) I am not a female citizen from that country.

LiteCoinGuy

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Quote from: spndr7 on December 27, 2013, 08:24:04 PM

Quote from: LiteCoinGuy on December 27, 2013, 12:27:24 PM

bitcoin is not illegal in india. why should it? but when you open a business and dont care about laws and regulation, you get punished.

Bitcoin is not illegal in India,but fiat money laundering (through the point, where conversion of bitcoin to rupees takes place) is certainly illegal if established norms are not followed.

yep but in the future we will see better exchanges that comply with the laws, iam pretty sure.

bryant.coleman

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Quote from: seriouscoin on December 28, 2013, 10:05:48 AM

Not if the citizens keep their life saving in BTC..... What the fck can they do? order to pay in ruppees? Good luck with that....

I honestly hope the Indians will be smart about this.

This is going to be their modus operandi:

1. First they will arrest the exchange owner. Then they will extract all the trade logs, complete with the Bitcoin wallet ids and linked bank accounts.

2. They will calculate how much BTC was bought / sold by each of the users.

3. Since they now have the bank accounts of the users, the authorities will contact them and ask them to pay VAT (can be 12.5% or can be 20%) + penalty for their purchases and Short Term Caps Gains (30%) + Penalty for gains from sales.

4. If you don't pay the penalty, they will seize your assets.

seriouscoin

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Activity: 658

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Quote from: bryant.coleman on December 28, 2013, 08:55:43 AM

Quote from: justusranvier on December 28, 2013, 04:02:09 AM

I doubt that the owners of a site in Finland are giving customer information to the authorities in India. There's no means by which they could issue a subpoena.

Only the USSA gets to effectively exercise extraterritorial jurisdiction.

Better be safe now, than sorry later.

The Indian Income Tax is notoriously corrupt and biased. If they get a stick to beat you, then you will lose your life's earnings. Going for appeals won't help. It will take 10-15 or even 25 years to get a court date.

Not if the citizens keep their life saving in BTC..... What the fck can they do? order to pay in ruppees? Good luck with that....

I honestly hope the Indians will be smart about this.

bryant.coleman

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Activity: 3808

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Quote from: justusranvier on December 28, 2013, 04:02:09 AM

I doubt that the owners of a site in Finland are giving customer information to the authorities in India. There's no means by which they could issue a subpoena.

Only the USSA gets to effectively exercise extraterritorial jurisdiction.

Better be safe now, than sorry later.

The Indian Income Tax is notoriously corrupt and biased. If they get a stick to beat you, then you will lose your life's earnings. Going for appeals won't help. It will take 10-15 or even 25 years to get a court date.

lumierre

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Quote from: dc0ded on December 28, 2013, 03:32:22 AM

Quote from: mpradeep on December 27, 2013, 08:52:06 PM

Quote from: spndr7 on December 27, 2013, 08:24:04 PM

Quote from: LiteCoinGuy on December 27, 2013, 12:27:24 PM

bitcoin is not illegal in india. why should it? but when you open a business and dont care about laws and regulation, you get punished.

Bitcoin is not illegal in India,but fiat money laundering (through the point, where conversion of bitcoin to rupees takes place) is certainly illegal if established norms are not followed.

Can you please clarify on what kind of norms to be followed if i am bitcoin trader while converting BTC to indian Rupees.

I think its a very dark zone. Laws here in India are very unclear on many things. I think you need a panel of expert lawyers to frame proper guidelines. Else the authorities can always use the laws according to their convenience. And when you are following government guidelines in India things might get more tougher for you... Any business paying income taxes knows it very well. Once the authorities know that you are a bitcoiin trader you will be the scape goat. Be ready for hundreds of audits, notices and explanations.

Don't let them rape you. You guys need to fight back. Bitcoin isn't a currency issued by any nation so legally they don't have any power over it and the people behind it. It's just something a group of people decided has value. What if next time they arrest you for trading eggs? Stand up and fight fo you rights.

justusranvier

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Quote from: bryant.coleman on December 27, 2013, 10:25:27 AM

My Indian friend called me a few hours ago, and told me that he is deleting his Localbitcoins.com account. His bank accounts were linked to it, and he is now fearful that the police might come after him. But he also told me that there are still Indian users who are selling Bitcoins using that site.

I doubt that the owners of a site in Finland are giving customer information to the authorities in India. There's no means by which they could issue a subpoena.

Only the USSA gets to effectively exercise extraterritorial jurisdiction.

dc0ded

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Quote from: mpradeep on December 27, 2013, 08:52:06 PM

Quote from: spndr7 on December 27, 2013, 08:24:04 PM

Quote from: LiteCoinGuy on December 27, 2013, 12:27:24 PM

bitcoin is not illegal in india. why should it? but when you open a business and dont care about laws and regulation, you get punished.

Bitcoin is not illegal in India,but fiat money laundering (through the point, where conversion of bitcoin to rupees takes place) is certainly illegal if established norms are not followed.

Can you please clarify on what kind of norms to be followed if i am bitcoin trader while converting BTC to indian Rupees.

I think its a very dark zone. Laws here in India are very unclear on many things. I think you need a panel of expert lawyers to frame proper guidelines. Else the authorities can always use the laws according to their convenience. And when you are following government guidelines in India things might get more tougher for you... Any business paying income taxes knows it very well. Once the authorities know that you are a bitcoiin trader you will be the scape goat. Be ready for hundreds of audits, notices and explanations.

mpradeep

member

Activity: 86

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Quote from: spndr7 on December 27, 2013, 08:24:04 PM

Quote from: LiteCoinGuy on December 27, 2013, 12:27:24 PM

bitcoin is not illegal in india. why should it? but when you open a business and dont care about laws and regulation, you get punished.

Bitcoin is not illegal in India,but fiat money laundering (through the point, where conversion of bitcoin to rupees takes place) is certainly illegal if established norms are not followed.

Can you please clarify on what kind of norms to be followed if i am bitcoin trader while converting BTC to indian Rupees.

spndr7

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Activity: 1032

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Quote from: LiteCoinGuy on December 27, 2013, 12:27:24 PM

bitcoin is not illegal in india. why should it? but when you open a business and dont care about laws and regulation, you get punished.

Bitcoin is not illegal in India,but fiat money laundering (through the point, where conversion of bitcoin to rupees takes place) is certainly illegal if established norms are not followed.

notthematrix

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CryptoTalk.Org - Get Paid for every Post!

https://localbitcoins.com/ select India , don't see any problems to get bitcoins.

Dont see any way they can stop it , annyway , in agentina rules are worse , but still you can get them Wink

LiteCoinGuy

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In Satoshi I Trust

bitcoin is not illegal in india. why should it? but when you open a business and dont care about laws and regulation, you get punished.

bryant.coleman

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Activity: 3808

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My Indian friend called me a few hours ago, and told me that he is deleting his Localbitcoins.com account. His bank accounts were linked to it, and he is now fearful that the police might come after him. But he also told me that there are still Indian users who are selling Bitcoins using that site.

BTCLuke

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My other Avatar is also Scrooge McDuck

This is probably the worst thing imaginable for India. Embarrassed

Just 2 weeks ago India had its' first conference: http://www.globalbitcoinconference.com/

BFL's Josh Zerlan and Johann Gevers of OT/Monetas both spoke there... Alongside Mahin Gupta.

From this article:

Quote

On Thursday, ED raided the premises of Mahim Gupta in Bopal area of the city who provides trading platform through his website -‑ buysellbit.co.in. During the preliminary investigation, the ED found that it is in clear violation of Foreign Exchange Management Act (FEMA) rules of the country as central bank does not provide permission to indulge in such transactions.

A few days after the conference, India warned its' citizens that bitcoin is unsafe. This caused the exchanges, including Mahins to shut down tuesday.

Specifically mentioned in this article:

Quote

Another operator, buysellbitco.in, informed investors that it is suspending buy and sell operations until it can outline a clearer framework with which to work.

“This is being done to protect the interest of our customers and in no way is a reflection of bitcoin’s true potential or price,” buysellbitco.in said in a statement posted on its website.

So we have to conclude that if he was on top of the game and complying with rules but then they raided him soon thereafter, India is now officially far more aggressive against bitcoin than any other country on earth.

They're even beating out North Korea now... Such savages!

spndr7

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http://www.dnaindia.com/india/report-first-time-in-the-country-ed-raids-a-bitcoin-seller-in-ahmedabad-1941187

Quote

On Thursday, ED raided the premises of Mahim Gupta in Bopal area of the city who provides trading platform through his website -‑ buysellbit.co.in. During the preliminary investigation, the ED found that it is in clear violation of Foreign Exchange Management Act (FEMA) rules of the country as central bank does not provide permission to indulge in such transactions.

Topic: [2013-27-12] India cracks down on bitcoin exchange - page 2. (Read 2749 times)