Indian Govt Planning Ban on Crypto

[soyalmomin75]

Indian government should regulate….

2 possibilities as follows…

If Govt bans the Bitcoin or Crypto in any way then a black market(cash) will start in parallel and Govt/regulator will never track the transaction….
If regulates then each transaction will be tracked properly from Exchanges that who is earning/investing in crypto. And if investor is earning profit he/she has to pay taxes as per regulation of short/long term investment return….

[webtricks]

Indian government should regulate….

2 possibilities as follows…

If Govt bans the Bitcoin or Crypto in any way then a black market(cash) will start in parallel and Govt/regulator will never track the transaction….

That's true.

If regulates then each transaction will be tracked properly from Exchanges that who is earning/investing in crypto. And if investor is earning profit he/she has to pay taxes as per regulation of short/long term investment return….

Since exchanges are not allowed to work in India, I don't agree with you on this one. Even if government issues some regulations regarding Bitcoin, it doesn't mean government can actually track all transactions done by traders. It can only give guidelines and it's up to traders whether they follow those or not. There will be very minute chances that government could actually catch the frauds in crytpo transactions.

[akhjob]

If regulates then each transaction will be tracked properly from Exchanges that who is earning/investing in crypto. And if investor is earning profit he/she has to pay taxes as per regulation of short/long term investment return….

Since exchanges are not allowed to work in India, I don't agree with you on this one. Even if government issues some regulations regarding Bitcoin, it doesn't mean government can actually track all transactions done by traders. It can only give guidelines and it's up to traders whether they follow those or not. There will be very minute chances that government could actually catch the frauds in crytpo transactions.
[/quote]

Actually, they can track the payments if they decided to. All they need to do is ask the exchanges to collect PAN details of the customers and the list of trades. If India is going to regulate Crypto transactions, exchanges will welcome the decision considering the current scenario.

[pawanjain]

Actually, they can track the payments if they decided to. All they need to do is ask the exchanges to collect PAN details of the customers and the list of trades. If India is going to regulate Crypto transactions, exchanges will welcome the decision considering the current scenario.

The governments will only be able to track the trades and the deposits/withdrawals made on the exchange itself.
That's the limit which they cannot exceed. The governments will not be able to track the source of the deposits/withdraws and trades that are done outside of the exchange and even if they do try to track the trades then all they will get is a long chain of transactions. Besides that, if the trader uses a mixer then it will be really tough for governments to track the source.

[Clement Kaliyar]

Since exchanges are not allowed to work in India, I don't agree with you on this one. Even if government issues some regulations regarding Bitcoin, it doesn't mean government can actually track all transactions done by traders. It can only give guidelines and it's up to traders whether they follow those or not. There will be very minute chances that government could actually catch the frauds in crytpo transactions.

If there is a regulation in India and if exchanges have to function in a proper manner they need to comply with all the KYC/AML regulation and even without any regulation all the exchanges were complying with those policies and if you are using fiat currency to purchase the coins then you need to use bank account and all the transactions are accounted for, so the only transaction that cannot have a record is face to face transaction and it has its own risk.

[libert19]

Actually, they can track the payments if they decided to. All they need to do is ask the exchanges to collect PAN details of the customers and the list of trades. If India is going to regulate Crypto transactions, exchanges will welcome the decision considering the current scenario.

...Besides that, if the trader uses a mixer then it will be really tough for governments to track the source.

It's about transactions where user converts crypto to inr, no government has means to track down every crypto or every transaction.

[webtricks]

Since exchanges are not allowed to work in India, I don't agree with you on this one. Even if government issues some regulations regarding Bitcoin, it doesn't mean government can actually track all transactions done by traders. It can only give guidelines and it's up to traders whether they follow those or not. There will be very minute chances that government could actually catch the frauds in crytpo transactions.

If there is a regulation in India and if exchanges have to function in a proper manner they need to comply with all the KYC/AML regulation and even without any regulation all the exchanges were complying with those policies and if you are using fiat currency to purchase the coins then you need to use bank account and all the transactions are accounted for, so the only transaction that cannot have a record is face to face transaction and it has its own risk.

It is very easy to do bank-to-bank transactions without using exchange sites. There are escrows out there who can help you to carry out anonymous trading without any need to meet face-to-face. There is no track that the amount you received in bank or the amount you paid out is linked to Bitcoin buy/sell transaction. Even there are few P2P Exchanges which don't have KYC requirement. So no-one can relate transactions with any specific user there too.