Now India is also having a big market for cryptocurrency after USA, Japan and North Korea. After a last 17-months period more than $3.5 billion worth of transactions of cryptocurrency has been conducted in India, according to the income tax department. Bitcoin has the appeal of any Ponzi conspire with a get-rich-quick guarantee. Furthermore, it can be another open door for hoarders of black money. Most of the investors are tech-savvy young investors, real estate players and jewellers, tax officials told Reuters.
Be that as it may, the government won’t let Bitcoin trap the honest investors or help the black-money. While other countries government not sure what to do with Bitcoin, notice has been already sent by the income tax department to tens of thousands of people trading in cryptocurrency. The notices were sent last month after a survey conducted by the income tax department.
Top banks including SBI, Axis, HDFC, ICICI and Yes Bank have suspended some accounts of major Bitcoin exchanges in India, suspecting dubious transactions, an ET report said citing sources. The accounts of few Indian exchanges were frozen after banks discovered there were used for reasons other than those stated when they were opened.
More than eight accounts in different banks have been suspended and other exchanges accounts are being investigated and had money withdrawal limits by the bank. Banks may suspend other operational accounts in the coming weeks.
Indian regulators are worried about bitcoin and other cryptocurrencies use for illegal activities, money laundering and terror finance. Cryptocurrencies are also involved in money-pooling activities commonly known as ponzi schemes with the promise of huge returns from bitcoin and other cryptocurrencies investment which they claimed to be minted through blockchain technology. There are some ponzi schemes that looks like cryptocurrencies investments may actually have not any relation with blockchain-developed virtual currency and this is nothing but new way devised by scamsters to collect investment amount in the form of bitcoin and other cryptocurrencies.