Topic: Modi government has bad news for Indians dreaming of easy money via bitcoins (Read 170 times)

those notices were sent to big whales and people who sent those coins to their relatives in foreign to save tax .

Its a dilemma for the Modi governemnt. A lot of the HNI's that they were supposed to be targeting with their demonetisation step may actually have bought bitcoin with the cash and have now ten times the money than they held in the first place.

There had been a campaign of BTC exchange for cash in several Tier-2 cities as I witnessed first hand. Suddenly doctors, lawyers with private practice have 100- 200 bitcoins and people were talking about them. Now everybody says, "Oh but I sold already", which they didn't.
They'd like to see them brought to justice somehow but due to the untraceable nature of these transactions, its going to be difficult.
They cannot simply outlaw it as they are the "Digital India" govt.

By the way, the time for easy money via bitcoin is long gone now. Its starting to get crowded in here! Time for some stabilization

thats correct there is nothing wrong in investing in crypto unless you are under law,you should pay capital gain taxes if you are trading a big amount and if you are trading low then there is nothing to worry ,use zebpay and coinsecure as they do kyc to give you a upper hand,mutual fund is also risky then also people invest in it and there is ongoing ads on tv to give awareness about it.crypto awareness is low in our country and some people misusing it and scamming investors. crypto adeptness is in early stage soon it will be accepted world wide.

I think crypto currencies are still not banned in India precisely because the prime minister seems to be a really tech loving person. Hint: Digitisation of all government interactions.

If it would have been any other government, they would have already banned it thinking, "How come common Indians get to become rich like us?"

Don't you think there might be a reason why they are only warning people about the risks instead of outright banning it. You think if they wanted to ban everything they couldn't do it in one day?

Typical Indian who rants without logic. As long as you have done your KYC and are paying tax on your earnings you have nothing to worry about. If you are laundering money through BTC/crypto, then the Govt. has all the right to target you. Stop crying and thinking you are an intelligent bitcoin investor.

Also, this is not a forum to discuss Demonisation & GST. So if you are some political party puppet, find a different forum.

I think it was bound to happen as if you being reading the press releases govt has nowhere supported it or gave any positive statements. They had always kept warning the citizens to be cautious and always said it is a ponzi scheme. By this itself the government has already hinted to the smart people that btc would not be allowed here.

After demonization failure and Confused GST now Govt targeting Bitcoin investors with fear in reality bitcoin investors are intelligent

Govt banks using Ripple so what will Modi government will say on using blockchain technology

Bitcoin, the cryptocurrency that has become the craze all over the world, is a hit with a lot of Indians too. More than $3.5 billion worth of transactions in the cryptocurrency have been conducted in India over a 17-month period, according to the income tax department. Bitcoin has the allure of any Ponzi scheme with a get-rich-quick promise. Additionally, it can be a new opportunity for hoarders of black money.

The profiles of common investors in Bitcoin prove this. They are tech-savvy young investors, real estate players and jewelers, tax officials told Reuters.

But the government won't let Bitcoin trap the honest investors or help the black-money industry. While governments across the world are not sure what to do with Bitcoin, the Indian government has swiftly acted to rein in Bitcoin and other such currencies. The income tax department has sent tax notices to tens of thousands of people dealing in cryptocurrency. The notices were sent after a survey assessed the penetration and patterns of virtual currency trade. The tax department is not going to wait until a final decision is taken on the legality of cryptocurrencies. Last month, the Income Tax (IT) department planned to send notices to 4 to 5 lakh high networth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency, the PTI reported. The move came after the IT department conducted survey operations at major bitcoin exchanges across the country on suspicion of alleged tax evasion. These operations were undertaken for gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, the identity of counter-parties and related bank accounts.

Top lenders including State Bank of India, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have suspended some accounts of major Bitcoin exchanges in India, suspecting dubious transactions, an ET report said citing sources. The banks have also sought additional collateral from the promoters of these exchanges on their borrowings and have capped cash withdrawals from the few accounts that are still operational. The accounts of a few exchanges were frozen after banks discovered they were used for reasons other than those stated when they were opened. At least eight accounts in various banks have been suspended, while others are being scrutinised and have had cash withdrawal limits imposed. Even the operational accounts could be suspended in the coming weeks.


In addition to financial risks—the value of bitcoins has seen huge fluctuation—the regulators are worried about their use for illicit and illegal activities, subjecting the users to an unintentional breach of laws against money laundering and terror finance. Concerns also emanate from some unscrupulous entities indulging in illicit money-pooling activities—commonly known as ponzi schemes—with the promise of huge returns from investment in bitcoins and other variants, which they claim are minted through blockchain, a distributed ledger technology that was created to mint bitcoins and comprises of extremely complex algorithms with several thousand nodes for each chain.

https://economictimes.indiatimes.com/news/economy/policy/modi-government-has-bad-news-for-indians-dreaming-of-easy-money-via-bitcoins/articleshow/62579050.cms