Bitcoin investors in India introduced income tax notice because $ 3.5 billion was invested in business

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New Delhi: Surveys across the country have shown that more than $ 3.5 billion transactions have been conducted in a period of 17 months, after which India has sent tax notice to thousands of people working in cryptrocessing, the Income Tax Department said is.

Tech lovers are among young investors, real estate players and jewelers investing in Bitcoin and other virtual currencies, tax officials have told Reuters to collect data of nine cryptocurrency exchange exchanges in Mumbai, Delhi, Bangalore and Pune.

How governments around the world are struggling to regulate cryptorchanger trading, and policy makers are expected to discuss this matter in the G-20 summit in Argentina in March.

The government has issued a fresh warning against digital currency investment, saying it is like "Ponzi schemes" that give unusually high returns to initial investors. But in India every month 200,000 users have been estimated to add, but so far the industry has not been banned.

B.R. Director General of Investigation of Income Tax Department in Karnataka, Balakrishnan said that the notice was sent after the survey to assess the entry and pattern of the virtual currency trading.

"We can not turn a blind eye to wait until the verdict's validity ends, it would be disastrous," he told Reuters.

The tax department has asked the people to deal with taxation on bitcoin and other virtual currencies such as athore and capital gains. He has also sought information about the source of their total share and funds in the notes notices seen by Reuters. "We found that investors were not showing it on their tax returns and in many cases there was no response to investment," said Balakrishnan.

Bitcoin, the world's largest crypto- ruranenginee, is hiking more than 1,700% last year, so that institutional and retail investors across the world talk about virtual currency.

Its major advantage has attracted the attention of global regulators managed to protect investors from fraud.

In recent weeks, Japan and China have made noise about a regulatory action, while South Korean policy makers have said they are considering closure of the domestic virtual currency exchange.

Regulation

An official of an Indian Finance Ministry said that a committee is contemplating the possibility of banning virtual currencies and ultimately the Parliament will have to form a regulatory regime.

Officials of India's leading Bitcoin exchange, Zeppe, said that the industry was adding 200,000 users per month with an estimated trading volume of around Rs 2,000 crore.

Zeebpe co-founder Saurabh Agarwal said, "Many of our customers are buying gold like digital currency."

Aman Kalra, marketing head of Sikkiscare, Bitcoin Exchange, New Delhi, said that more than 150 bitcoins are changing hands every week through their platform. The company has 100,000 registered users and now a platform has been launched to sell etarium and other digital currencies.

"I do not think anyone in the government should label our business as a 'Ponzi scheme', we are not doing anything illegal," Kalra said.

Tax inspectors said that they helped with blockchain experts, which is technology, which regulates bittoin, to conduct surveys.

In some cases, tax officials took part in the business so that they could identify the weaknesses, when they found that investors had put billions of dollars in dollars through irregular exchanges.

One of the biggest concerns for New Delhi, a finance ministry official said, how to protect investor's investments on offshore exchanges.

Pawan Duggal, a Supreme Court lawyer specializing in cyber crimes, said that hundreds of investors have gone to police and courts with complaints of transaction in virtual currencies.

"To keep the cryptocontrollers in mind, the government should consider giving limited legitimacy, while ensuring that these are not for cryptic crimes". Reuters

Jatindra Das in Bhubaneswar and Vishal Sridhar contributed in this story in Bengaluru.