In recent times, digital currency regulation has intensified in Indian, making it challenging to trade in virtual currencies in India. However, in order to overcome these hurdles, Indians having taking a different direction in which trading of digital currency is done offshore by relatives or friends using foreign bank accounts.
Regulations solidified in India
In efforts to solidify the virtual currency regulative system in India, the Indian government has vowed to establish a regulatory framework for all players of the virtual currency industry that would be made public in a short while. In addition, 100,000 virtual currency traders were given notice by the Indian tax authority asking them to pay taxes, earlier this month.
Recent developments have suggested that a database of virtual currency users and transaction is to be created, to conform to the government’s mandates, by the blockchain and Cryptocurrency Committee (BACC), an industry group whose members comprise of 7 cryptocurrency exchanges. The Times of India further explained
In efforts to overcome overly-strict regulation in India, Indian citizen are finding a different avenue to overcome this situation, whereby they contacting their own NRI (non-resident Indian) network of friends and family members, according to a local media agency.
The Ceo of bitcoin hardware wallet Bitlox, Dana L Coe trusts that one of the major pulls of bitcoin is confidentiality, the local media elaborated.
He further emphasizes that in buying a specific medication and a person (or group of people) gather the data and sends it to a pharmaceutical company, which as a result may cause companies to raise prices based on these sets of demographic information. He also clarified that intrusion of privacy would not work, if one utilizes unknown and private payments.
He also added that “With Indian exchanges like Unocoin, Zebpay, Coinsecure, keen on increasing regulation and scrutiny into transactions, bitcoin aficionados say buying from US exchanges is a more popular alternative for purchases.”
The concrete security provided by virtual currency is also a main attraction of Indians to virtual currencies, the publication added. Dinesh emphasized that the requirement of Aadhaar is a dampener,” which indicates the 12-digit unique identity number given to every Indian citizen on the basis of their demographic and biometric data.
He also explained that the group of bloggers, technicians, and geeks are reasonably non-sympathetic to the constant sequence of leaks and insecurities conveyed with Aahaar. Moreover, he further sighted that an effort to set up a regulatory framework for bitcoins in India, it will most likely discourage expert bitcoin miners from doing virtual currency mining exchanges in India.