State Bank of India, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have suspended accounts of major Bitcoin exchanges in India! What is Bitcoin?Image source : https://www.
bitcoin.com%2Fguides&psig=AOvVaw10m3OvcCrGlrLgojMHfwza&ust=1516717614528361Bitcoin, the world’s first decentralized currency, has created a craze all over the world, and Indians are no exception. More than $3.5 billion worth of transactions in the cryptocurrency have been conducted in India in the last 17 months, according to sources from the income tax department.Why is the government trying to control them?Image source : https://www.google.co.in/url?sa=i=j==s=images==rja=8=0ahUKEwjgx5uw5OvYAhUENY8KHc5xAMwQjRwIBw=https%3A%2F%2Fwww.
youtube.com%2Fwatch%3Fv%3DrNS90SUTVvY=AOvVaw2uEIeschIFdIkWcGkYuD-R=1516717686933900Bitcoin allures people like Ponzi schemes with a promise of earning tons of money in a small time. Additionally, it can be a heavenly new opportunity for black money holders, thus depriving the income tax department from a good amount of revenue.
The profiles of Bitcoin investors also indicate the same. They are mostly tech-savvy young investors, real estate players and jewellers, tax officials told Reuters.But the government is in no mood to allow honest investors to fall in the Bitcoin trap, nor do they want to help the black-money holders in any manner whatsoever.While most countries are still not sure about what to do with Bitcoins and other cryptocurrencies, the Indian government has taken a quick decision to regulate Bitcoin and other such currencies. The income tax has sent tax notices to many people dealing in cryptocurrencies.
The notices were sent after a survey assessed the penetration and patterns of virtual currency trade. These operations were undertaken for gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties and related bank accounts.Clearly, it suggests that our IT department is no mood to wait until the legality of Bitcoin is proven.
Banks to suspend accounts of all Bitcoin exchanges in India?Image source : https://www.google.co.in/url?sa=i=j==s=images==rja=8=0ahUKEwiNr_qQ5OvYAhVFvo8KHQBgD5EQjRwIBw=https%3A%2F%2Finc42.com%2Fbuzz%2Fbitcoin-cryptocurrency-india-government%2F=AOvVaw3p5hUcV8Tw9pzNIlkOsuG4=1516717766823860Top lenders including State Bank of India, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have suspended accounts of major Bitcoin exchanges in India, suspecting dubious transactions. 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 frozen accounts were used for reasons other than those for which they were opened. Many other accounts are also being investigated and have had cash withdrawal limits imposed. Even the operational accounts could be suspended in the coming weeks, various sources said. The Bitcoin value also fluctuates a lot. The regulators are worried about their use for illegal purposes, subjecting the users to breach of laws against money laundering and terror finance. Ponzi Schemes are also on the rise, which promises people a lot of return on their investment.
They 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.Financial regulators suspect that cryptocurrency investments may actually have nothing to do with any blockchain-developed virtual currency and are just new ways devise to ride the wave and what they may be offering could be ‘e-ponzi’ schemes, as termed by regulators. The regulators are also worried that a complete lack of regulatory regime for such cryptocurrencies may give rise to ‘e-ponzi’ schemes in a larger scale.What are the measures being taken by the financial regulators?Image source : https://www.google.
co.in/url?sa=i=j==s=images==rja=8=0ahUKEwie3I3x5OvYAhXHr48KHZ6_D_gQjRwIBw=https%3A%2F%2Finc42.com%2Fbuzz%2Fbitcoin-cryptocurrency-india-government%2F=AOvVaw10Fox1KDVoM9-PjhDCT5p9=1516717954339310RBI and SEBI, the two major players in the financial sector, are now working together to devise a method to control and regulate Bitcoins and other cryptocurrencies.
A lot of measures are now being discussed, including applying the current regulation of Ponzi schemes and black money generation to these currencies. Hopefully, they will successfully be able to clamp down frauds, and ensure financial safety of honest investors.Image source : https://www.google.co.in/url?sa=i=j==s=images==rja=8=0ahUKEwjlr4Oc5evYAhXHQY8KHTFLAHEQjRwIBw=https%3A%2F%2Fofficechai.com%2Fstories%2Fbitcoins-market-cap-now-value-indian-currency-notes-circulation%2F=AOvVaw1mXwTibl2R7GkVSigvJGre=1516718059410587 However, if you are dreaming of making some quick money by investing in Bitcoins, these moves might shatter your dreams!