India Made A Decision To Start Its Onslaught Against Bitcoins

The increasing fad for bitcoin, a crypto currency that has shot up to shocking heights, has come below the lens of the government. Bitcoin can be a simple way to avoid tax or trap gullible small investors in ponzi offers. The government has started an onslaught on unlawful employment of this uncontrolled virtual currency.

India Made A Decision To Start Its Onslaught Against Bitcoins

Broadening its investigation into Bitcoin trade and investments, the IT (Income Tax) department is ready to release notices to 4–5 Lakh HNI (high networth individuals) all over the nation who were doing business on the exchanges of this unfettered crypto currency, the media reported. The decision follows after the IT department carried out survey processes previous week at main bitcoin exchanges all over the nation on doubt of supposed tax avoidance. These processes were undertaken for collecting proof for setting up the identity of traders and investors, identity of counter-parties, the payment commenced by them, and associated bank accounts.

Previously this month, there was a gush in the cost of bitcoin. It increased from below $10,000 at the beginning of the year to conclude at $20,000, prior to a sharp 20% drop within no time. Apart from the monetary risks—the cost of bitcoins has witnessed major falls within no time—the controllers are concerned about their employment for illegal and illicit activities, subjecting the consumers to an accidental violation of rules in opposition to terror finance and money laundering.

Worries also originate from some dishonest bodies imagining in illegal money-pooling schemes—commonly dubbed as ponzi offerings—with the pledge of great returns from spending in bitcoins and other versions, which they state are created via blockchain. Now, blockchain is a distributed ledger tech that was made to make bitcoins and includes of very complicated algorithms with hundreds of thousands of nodes for every chain.