After RBI, tax department puts bitcoin underneath scanner as 'e-ponzi' scare looms

News agency PTI rumored quoting officers that revenue enhancement department has conducted surveys the least bit major bitcoin exchanges across the country. 

The officers aforementioned varied groups of the sleuths of the department, beneath the command of the Bengaluru investigation wing, on visited the premises of 9 such exchanges within the country as well as in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram, since early morning. 

The survey, beneath section 133A of the revenue enhancement Act, is being conducted for "gathering proof for establishing the identity of investors and traders, group action undertaken by them, identity of counterparties, connected bank accounts used, among others," they aforementioned. 

The survey groups, sources aforementioned, square measure armed with varied monetary information and inputs concerning the operating of those exchanges and this can be the primary huge action against them within the country. 

The recent spike within the cryptocurrency that saw bitcoin rallying to over Rs ten 100000 from each one has caught the regulators' attention and quite clearly they're not on board with the investors' enthusiasm. 

Reports recommend that monetary sector watchdogs, as well as run batted in and Sebi, and alternative government agencies, can presently get into a huddle to organize a framework to safeguard the gullible investors and to confine on the fraudsters UN agency might try and manipulate the restrictive gaps. Earlier this month, stressing upon a note issued in December 2013, RBI said, "in the wake of great spurt within the valuation of the many VCs and zoom in Initial Coin Offerings (ICOs), run batted in reiterates the concerns". 

Last month, government minister Arun Jaitley too had processed that the govt doesn't recognise any sort of virtual currencies as well as bitcoins. "Recommendations square measure being worked at. The government's position is obvious, we do not recognise this (cryptocurrency) as legal currency as of currently," he had aforementioned.

The government and its restrictive bodies square measure cautious of 'e-ponzi' schemes rising out of the bitcoin elation. A typical 'ponzi' theme involves the operator aggregation an outsized quantity cash|of cash} from investors and paying them returns from their own money or the cash collected from succeeding investors, instead of from profit attained by the person or the entity operative such a theme. 

Income tax department has conducted surveys the least bit major bitcoin exchanges across the countryRBI, Sebi and government minister Arun Jaitley have conjointly raised considerations on cryptocurrency

Government and its restrictive bodies square measure cautious of 'e-ponzi' schemes rising out of the bitcoin elation

There is a suspicion that some questionable cryptocurrencies and bitcoin investments may very well don't have anything to try and do with any blockchain-developed virtual currency and square measure simply new ways that devised by scamsters to ride the wave and what they will offer may be 'e-ponzi' schemes, officers recommend. 

There square measure quite few proposals on the table and people embrace applying to cryptocurrencies the prevailing laws aimed toward checking unfold of ponzi schemes or illicit money- pooling activities, hiding and black cash generation and circulation, another official further

In March, the Union finance ministry had grooved associate degree Inter-Disciplinary Committee to require stock of the current standing of virtual currency each in Republic of India and globally and recommend measures for addressing such currencies

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