Apparently, the cryptocurrency market, India came under pressure from several government departments. Prime Minister Narendra modi embarked on a policy to regulate cryptocurrency, and the Tax Department sends notice to the participants of the cryptocurrency market.
At the end of 2016, Prime Minister of India Narendra modi has announced «the policy of demonetization» according to which since November 9, 2016 denominations of 500 and 1000 rupees are no longer considered «legal tender». The reasons were specified limiting the impact on the national economy counterfeit money, «black money», corruption and terrorism.
Despite the fact that the effectiveness of this campaign repeatedly challenged and questioned, at the present time, the Prime Minister uses the same reason to justify the regulation of cryptocurrencies.
The Minister of Finance against the legalization of cryptocurrency
January 2, 2018, Finance Minister Arun Jaitly, answering the questions of the Indian Parliament, said that «bitcoin or similar crypto-currencies are not legal tender, and those who use them in transactions, do so at your own risk».
This statement was commented by the head of marketing, Indian cryptocurrency exchange Coinsecure Aman Kalra (Kalra Aman):
«If you listen carefully to the comments of Mr. Jaitly, it can be noted that he does not mention bitcoin and cryptocurrencies illegal, and notes that they are waiting for the results of the work group created specifically for this purpose.»
View Kalra is quite popular in the industry of kryptonyte and is that an exception cryptocurrency from the category of «legal tender» does not make their trade and use illegal. However, during the «hour of questions» member of Parliament Muthuvel Kanimozhi (Muthuvel Kanimozhi) asked the Minister a question, whether the government plans to regulate cryptocurrencies like bitcoin and ether, the trade of which the share of India «is more than 11%».
Despite the fact that action to manage the major cryptocurrencies can hurt the interests of foreign investors (due to the large participation of India in the cryptocurrency market), Kalra indicated that «notesini cryptocurrency to legal tender, we are not worried. If the government needed to ban them, it would have done it long ago.» Kalra also said that the government needed time to understand the technology of bitcoin and create a corresponding regulation.
The news about the freezing of Bank accounts fake?
January 21, 2018, the Indian media reported that several banks (State Bank of India, ICICI, HDFC Bank and Axis Bank) froze the Bank accounts associated with cryptocurrency trading.
This information Kalra commented on two of the now very popular «fake news». According to Kalra, in such reports «very little truth».
«I can’t speak for other Indian stock exchanges, but Coinsecure has not received any representations on this issue from their partner banks».
However, the news managed to have a negative impact on the volume of trade bitcoins in India.
Kalra said that since the beginning of this year, they observed «a significant decline in daily trading volumes». Most likely, this can be attributed to all the Indian stock exchanges: «it Seems that after reading such news users feared for the safety of their funds and do not hurry to invest, waiting for the release of a new regulation or at least a clear statement from the government.»
The tax Department sends notice to cryptobytes
One of the main ideas demonetization of 2016, which can be applied to cryptocurrencies — taxation. This week the Tax Department India went on active measures, sending out notifications to the people involved in the trade of cryptocurrency. Most likely, the notification was the result of a survey according to which over 17 months in the cryptocurrency market have been implemented transactions in excess of 3.5 billion dollars.
According to Kalra, therefore, the Indian Tax Department just reminds people who have received income from kriptoloji, about the obligations on payment of taxes. However, the validity of the tax was also scaring users, forcing them to suspend trading on the Internet.