As Bitcoin is getting famous day by day. More people want to buy it. In India, there are many people who are using bitcoins. Recently the government of India announced that bitcoin is not valid money in India and it is not safe to use. Most of the people use bitcoin or any other cryptocurrency to hide their black money.
Ajeet Khurana, head of the Blockchain and Cryptocurrency Committee of the Internet and Mobile Association of India (IAMAI), told the Economic Times that the group (which counts seven cryptocurrency exchanges among its members) plans to submit a proposal to the government, in which the concerned agencies will be able to look up purchase data for all buyers and sellers on domestic exchanges and trace their activity through their Aadhaar ID or Permanent Account Numbers (PAN).
While PAN card is in the system for many years. They are using PAN to track the activity of buyers. But Aadhaar ID is the recent system and more convenient for them to use.
The decision to propose traceable activity within India’s domestic exchanges follows a statement from the country’s Finance Minister from earlier this month, in which he said that cryptocurrencies aren’t legal tender there (to be clear, no currency except the Indian Rupee is a legal tender in the country) and that there will be a crackdown on the use of virtual currencies in financing illegitimate activities.
India’s tax authorities have issued a notice to some 100.00 investors and asked them to reveals their profit which they earned from the cryptocurrency or doing trading. They will collect all the tax from them and also charge a penalty if needed. There’s likely plenty in taxes to be collected, as one in every 10 Bitcoin transactions is said to take place in the country.
It will be interesting to see how this plays out, and what will the reaction of investors from India. This decision will be finalized within 1 or 2 months. Let us know in comments what you are thinking about it.