Beware! Gov Planning a Cracks Down on Crypto Traders Evading Binance Ban

[Bureau]

The talks between Binance and the government have failed and the government of India is now planning to take action against those who are still using Binance for crypto trading. I found an article being published in a famous news media website and I think it is over for Binance in India. I am quoting below the important piece from that news.

"Meanwhile, the government is also working with banks to formulate action against traders who are using VPN (virtual private network) to access Binance’s website to circumvent the ban and continue crypto trades illegally."

If you are still using Binance for crypto to fiat transactions then stop doing it right now. The government is in talks with the banks to identify those bank accounts where fiat was credited from Binance P2P. In the worst case scenario, those bank accounts will get frozen and account holders will be punished legally. If you have funds in that account then it is better to withdraw funds ASAP and keep the account balance nil. Do not transfer funds to another bank account as they will freeze as they can trace the trail of money.


 

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[pakhitheboss]

The situation is going from bad to worse, why can't the government allow Binance to operate until they set up their infrastructure according to their rules? They are not saying they won't follow the policy, they need some time and in the meantime, they want to operate. They are willing to pay taxes and fines according to the articles but our government is not nudging. I believe that only Binance has responded to the government's ban on cryptocurrency, while other exchanges have ignored it altogether. This may have angered the government, and they are now directing their frustration towards the only exchange that is complying with their demands.

It is better to stay away from Binance until this issue gets resolved or someone might lose their bank account. I am planning to shift to a different international exchange which is not banned in India and has a decent amount of volume. Anyone here who can suggest a name? BTW, I was having a discussion with zasad@ on a topic in the forum he suggested I check this link - https://www.bestchange.ru/tether-trc20-to-dollar-cash-in-dlh.html

I did check it and found that it is working but the exchange rate is not that good. Anyone living in Delhi, Mumbai, or Kolkata can deal in cash for others who do not live in these three cities they can do UPI payment.

[TheUltraElite]

Cant help the government do its dirty business once again in order to curb the use of cryptocurrency here.

The illiterate politicians who dont understand the C of cryptocurrency will follow and make comments without understanding anything and then we have these baseless ideas of crypto being used to fund illicit activities while fiat is not doing any such thing.

My friends here should withdraw from Binance and wait it out and see what the government actually has in mind. They might try to push in CBDC in this manner for a start, I have a hunch though I cant back it up.

[avikz]

If you are still using Binance for crypto to fiat transactions then stop doing it right now. The government is in talks with the banks to identify those bank accounts where fiat was credited from Binance P2P. In the worst case scenario, those bank accounts will get frozen and account holders will be punished legally. If you have funds in that account then it is better to withdraw funds ASAP and keep the account balance nil. Do not transfer funds to another bank account as they will freeze as they can trace the trail of money.
 

Once the government finds out your one account, they will be able to find out all other accounts you are holding. So it really doesn't matter whether you want to keep one of your account balance zero or weather you do not send any fund from one of your accounts to your other account. Every single thing is linked with your pan card and that's exactly the information your government needs.

It's really concerning to see that Indian government is refusing to use a new technology which surely will benefit all of us.

[Bitcoin Smith]

The government is in talks with the banks to identify those bank accounts where fiat was credited from Binance P2P. In the worst case scenario, those bank accounts will get frozen and account holders will be punished legally. If you have funds in that account then it is better to withdraw funds ASAP and keep the account balance nil. Do not transfer funds to another bank account as they will freeze as they can trace the trail of money.

This is worse than what we expected, but Binance may try to comply to whatever regulations set up by Indian soon because they are facing similar issues in few other Asian countries too, so they have to act quickly if they want to be in the business.

I read the whole part and I guess government may trace the users too even if they have nil balance in their account if they are evading 30% capital gains, but a small relief is FIU is targeting big traders like one who exceeded 10 lakh so they are one mostly will be affected first if they don't pay the 30% capital gains as soon as possible.

[pakhitheboss]

I read the whole part and I guess government may trace the users too even if they have nil balance in their account if they are evading 30% capital gains, but a small relief is FIU is targeting big traders like one who exceeded 10 lakh so they are one mostly will be affected first if they don't pay the 30% capital gains as soon as possible.

This government is more interested in getting tax from 4000 account holders. It is believed that these are highly valued crypto investors who have evaded 1% TDS and capital gain. The law says that not paying TDS can result in 7 years of jail and 5 Lac as a penalty, considering they can track all of them with the help of banks the amount of revenue would be huge. This government is only trying to ruin the hopes of thousands of middle class who were able to make some decent earnings from cryptocurrency trading.

I won't be surprised if we hear kids as in 18-20 years old being part of the 4000 accounts that they are searching now. I still do not think that such a response would make them a favorite in the upcoming elections. What they are doing with one of the biggest crypto communities in the world would end with a deficit with their overall gains in votes from 2019.

[Bitcoin Smith]

I read the whole part and I guess government may trace the users too even if they have nil balance in their account if they are evading 30% capital gains, but a small relief is FIU is targeting big traders like one who exceeded 10 lakh so they are one mostly will be affected first if they don't pay the 30% capital gains as soon as possible.

This government is more interested in getting tax from 4000 account holders. It is believed that these are highly valued crypto investors who have evaded 1% TDS and capital gain. The law says that not paying TDS can result in 7 years of jail and 5 Lac as a penalty, considering they can track all of them with the help of banks the amount of revenue would be huge. This government is only trying to ruin the hopes of thousands of middle class who were able to make some decent earnings from cryptocurrency trading.

I won't be surprised if we hear kids as in 18-20 years old being part of the 4000 accounts that they are searching now. I still do not think that such a response would make them a favorite in the upcoming elections. What they are doing with one of the biggest crypto communities in the world would end with a deficit with their overall gains in votes from 2019.

For me it's weird to see government targetting crypto tax evaders because usually government doesn't give **ck even who evade taxes in crores and also if I am not wrong they only will push the evaders to pay the pending tax with little more penalty as punishment but here they are hammering with strict standards which makes me wonder is this really India's decision of US like governments forcing India to behave like that.

Just weird assumption but I feel something is behind targetting crypto.

[Bureau]

For me it's weird to see government targetting crypto tax evaders because usually government doesn't give **ck even who evade taxes in crores and also if I am not wrong they only will push the evaders to pay the pending tax with little more penalty as punishment but here they are hammering with strict standards which makes me wonder is this really India's decision of US like governments forcing India to behave like that.

Just weird assumption but I feel something is behind targetting crypto.

The thing is that the government is more focused on getting tax income from cryptocurrency traders and that is why they are going for the kill. After the PayTM bank fiasco wherein a lot of accounts were connected to a single PAN and all these accounts were used for money laundering, it is clear that the government suspects those 4000 accounts are linked to the same issue.

The rich in this country have been known to evade tax or steal taxpayer's money and run to another country. That has been done for many years now under the watchful eyes of the government and still, they cannot get hold of them. That is why they are turning to those who are not rich but may be pawns of the rich or maybe genuine traders or maybe middle-class individuals who can easily be held responsible for the loss to the exchequer and their incompetence.

[Bitcoin Smith]

The thing is that the government is more focused on getting tax income from cryptocurrency traders and that is why they are going for the kill. After the PayTM bank fiasco wherein a lot of accounts were connected to a single PAN and all these accounts were used for money laundering, it is clear that the government suspects those 4000 accounts are linked to the same issue.

As far as I know, the failure of paying taxes will only result into penalty/fine added with the amount they are supposed to pay and in rare circumstances the individuals maybe imprisoned even after the notice period and not given any valid reason why they haven't paid so this drama is just to increase the tax collection from the people who were doing something to survive.
 

The rich in this country have been known to evade tax or steal taxpayer's money and run to another country. That has been done for many years now under the watchful eyes of the government and still, they cannot get hold of them. That is why they are turning to those who are not rich but may be pawns of the rich or maybe genuine traders or maybe middle-class individuals who can easily be held responsible for the loss to the exchequer and their incompetence.

We can debate about the dirty politics all day long, but that is what it is and still they are going to be likely be in the power in the upcoming election too due to corruption of opposition part in their ruling period. And now Modi government is planning everything perfectly to keep them in power by making their agenda to majority and media power.

[elevates]

I have already seen people discussing about letters they have received from the IT department. Is this something related to what you have said @OP. I mean these letters are asking those individuals to visti the local IT cell with full documentation of their transactions and their return filing certificate. I guess that is what we might be discussing on this thread and trust me these guys are very frustrated with those letters.

[kentrolla]

This is worst I never though government will stoop to such low in restricting people to earn some additional amount and I wouldn't blame the government but rather the citizens of India for voting such illiterate government and politicians to power and now it's time for payback.

But, really disheartened to see how government is trying to eat up to any profit which a traders make with so much of mental stress and hardwork, it's not a fair thing and if government tightens it's noose we cannot do anything ever unless they decide to change their mind. I hope it's just a temporary restriction until the 2024 election to avoid circulating of funds through crypto.

[pakhitheboss]

This is worst I never though government will stoop to such low in restricting people to earn some additional amount and I wouldn't blame the government but rather the citizens of India for voting such illiterate government and politicians to power and now it's time for payback.

But, really disheartened to see how government is trying to eat up to any profit which a traders make with so much of mental stress and hardwork, it's not a fair thing and if government tightens it's noose we cannot do anything ever unless they decide to change their mind. I hope it's just a temporary restriction until the 2024 election to avoid circulating of funds through crypto.

Nothing can be done as the ruling party is set to make a comeback in the upcoming election. I have very little hope now that things will change in the future. The shadow ban is now more like a permanent ban of the International crypto exchanges and the only option now left is to find new exchanges. Since I am still able to get access to the Binance app I am not facing issues at the moment. Whereas those who have not been able to log in to those apps are the ones searching for alternate options. I am planning to list down other exchanges that can be used by the Indian community as an alternate option to the banned exchanges.

[TheUltraElite]

I am planning to list down other exchanges that can be used by the Indian community as an alternate option to the banned exchanges.

This cat and mouse game is something I personally hate. But well this is India and we have been doing the same for piracy for years now and now the same for crypto too.

While the ruling party is indeed coming back because there is no good alternative, I sure hope the proper budget this year will have some mentioning of crypto in good terms.

The exchange owners should mobilize and start their own mouthpiece, otherwise no one will be able to do justice to the upcoming bull runs.

[kentrolla]

I am planning to list down other exchanges that can be used by the Indian community as an alternate option to the banned exchanges.

This cat and mouse game is something I personally hate. But well this is India and we have been doing the same for piracy for years now and now the same for crypto too.

While the ruling party is indeed coming back because there is no good alternative, I sure hope the proper budget this year will have some mentioning of crypto in good terms.

The exchange owners should mobilize and start their own mouthpiece, otherwise no one will be able to do justice to the upcoming bull runs.

I have been closely observing the regime appeasement practiced by the incompetent Indian crypto exchange owners are they are busy pleasing the government and don't forget they said it was a good sign when crypto was regulated in India and moreover when the government banned foreign exchanges they were the first one to be celebrating that move stating now Indian users will come back to them. We should never use them as there buyer/taker fee is on higher side and even the commission is higher compared to foreign exchanges. Let's move on from Indian exchanges and not have any hope from them.

[Bureau]

I am planning to list down other exchanges that can be used by the Indian community as an alternate option to the banned exchanges.

This cat and mouse game is something I personally hate. But well this is India and we have been doing the same for piracy for years now and now the same for crypto too.

While the ruling party is indeed coming back because there is no good alternative, I sure hope the proper budget this year will have some mentioning of crypto in good terms.

The exchange owners should mobilize and start their own mouthpiece, otherwise no one will be able to do justice to the upcoming bull runs.

I have been closely observing the regime appeasement practiced by the incompetent Indian crypto exchange owners are they are busy pleasing the government and don't forget they said it was a good sign when crypto was regulated in India and moreover when the government banned foreign exchanges they were the first one to be celebrating that move stating now Indian users will come back to them. We should never use them as there buyer/taker fee is on higher side and even the commission is higher compared to foreign exchanges. Let's move on from Indian exchanges and not have any hope from them.

A few local exchanges are the reason why the government of India was forced to place a shadow ban on international exchanges. The move was made to get those users who had left Indian exchanges for international exchanges. To an extent they have been successful and they are now again seeing an increase in the volume. Some of those exchanges are known for their malpractices in the past. It is also believed that a few of these owners of local exchanges are in favor of the existing ruling party.

[TheUltraElite]

A few local exchanges are the reason why the government of India was forced to place a shadow ban on international exchanges. The move was made to get those users who had left Indian exchanges for international exchanges. To an extent they have been successful and they are now again seeing an increase in the volume. Some of those exchanges are known for their malpractices in the past. It is also believed that a few of these owners of local exchanges are in favor of the existing ruling party.

It has been such a hotchpotch that I have stopped following that timeline. I am hopeful that the budget will shed some good light on the future of crypto and that trading from Indian exchanges would be feasible, but I guess I am getting ahead of myself.

Crypto in India will take a long time to recover from this mess. Till then, better hold on to your crypto and not sell.

[Bureau]

It has been such a hotchpotch that I have stopped following that timeline. I am hopeful that the budget will shed some good light on the future of crypto and that trading from Indian exchanges would be feasible, but I guess I am getting ahead of myself.

Crypto in India will take a long time to recover from this mess. Till then, better hold on to your crypto and not sell.

Exactly the right word for the present situation is hotchpotch and it is a big mess. I do agree with you it will take a lot of time for India to come back where it was earlier. I have a hope that the government in its full budget will come up with less tax for the community to survive and would incentivise to create an interest to use local exchanges. They might have banned international exchanges but they know there are many other international exchanges that are currently being used by the community for trading.