Zebpay users avoid depositng until you read this!

[Bitcoin Smith]

As part of our ongoing commitment to regulatory compliance and user safety, we strongly advise all Users to avoid engaging in transactions or interactions with wallets, platforms, or entities prohibited under law including but not limited to gambling, betting, gaming.

Please note that any activity identified as violating legal or regulatory requirements may result in account restrictions, suspension, or other necessary actions in accordance with our policies.

Users are advised to exercise due diligence and ensure that their activities remain compliant with all applicable laws.

It is one of the very few exchanges which still got INR pair but they recently made an important announcement which is worth sharing and to keep our zebpay account from termination. The exchanges can hold the deposit/or entire balance if they found the source is coming from gambling-related activities or anything that is prohibited by our laws and we all know gambling is banned recently in our country so even if we are not making the crypto from gambling still it could be connected to the wallets that can leads to other issues if we deposit the bitcoin came from the signature earnings.

[Cointikka]

It is one of the very few exchanges which still got INR pair but they recently made an important announcement which is worth sharing and to keep our zebpay account from termination. The exchanges can hold the deposit/or entire balance if they found the source is coming from gambling-related activities or anything that is prohibited by our laws and we all know gambling is banned recently in our country so even if we are not making the crypto from gambling still it could be connected to the wallets that can leads to other issues if we deposit the bitcoin came from the signature earnings.

IDK.. how will they establish that the deposit is being made from a wallet that is owned by a gambling website? Most gambling websites that are still operating in India due to gov incompetence have technical ways to counter this issue. Furthermore, those who gamble never transfer their money directly to Indian exchanges or those that are now under FIU. They always put their wins into their private wallet and, when required, cash out through exchanges or P2P. BTW.. this is a common practice followed by all exchanges registered under FIU and is not something new.

[Nrcewker]

Furthermore, those who gamble never transfer their money directly to Indian exchanges or those that are now under FIU.

OP is talking about signature campaign funds bro. Many of us are part of signature campaigns run by crypto casinos and these casinos make signature payments from their cold storage wallets or from the gambling site's address. Hence the payment might directly show up at ZebPay as funds received from a casino.

And believe me I have seen many people accepting signature payment money directly to an exchange's address just to save on transfer fees. Generally BTC fees can be quite high, so this type of direct transfer to an exchange is very common with campaigns providing BTC payments.

But my actual question is are people still using these government regulated exchanges instead of P2P? so are they mandatorily paying the 30% tax regardless of whether they actually make a profit or not?

[Bitcoin Smith]

.. how will they establish that the deposit is being made from a wallet that is owned by a gambling website? Most gambling websites that are still operating in India due to gov incompetence have technical ways to counter this issue. Furthermore, those who gamble never transfer their money directly to Indian exchanges or those that are now under FIU. They always put their wins into their private wallet and, when required, cash out through exchanges or P2P. BTW.. this is a common practice followed by all exchanges registered under FIU and is not something new.

Exchanges tie up with chain analysis companies to detect funds coming from any hacks and some of the casino made their hot wallet and cold wallet addresses public so if the deposit we made any connection with those addresses then exchanges can freeze the TX and ask for further soruce of funds.

Yes this is not a new one but zebpay made an announcement means they are going to enforce it rather than simply having it in their terms.

[eaLiTy]

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The exchanges can hold the deposit/or entire balance if they found the source is coming from gambling-related activities or anything that is prohibited by our laws and we all know gambling is banned recently in our country so even if we are not making the crypto from gambling still it could be connected to the wallets that can leads to other issues if we deposit the bitcoin came from the signature earnings.

You can convert the coins to a stable currency, hold them in your own private wallet, and then move them to an exchange to avoid any issues. The issue arises only if you deposit directly from a gambling or prohibited site.

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those who gamble never transfer their money directly to Indian exchanges or those that are now under FIU. They always put their wins into their private wallet and, when required, cash out through exchanges or P2P. BTW.. this is a common practice followed by all exchanges registered under FIU and is not something new.

If you never withdraw directly to Indian exchanges then you are fine for the moment.

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But my actual question is are people still using these government regulated exchanges instead of P2P? so are they mandatorily paying the 30% tax regardless of whether they actually make a profit or not?

This is the tricky part: if you earn a salary in cryptocurrency and immediately convert it into INR, you are only bound to pay normal income tax according to your salary slab. However, if you hold the crypto and make a profit, you have to take the difference and pay a flat 30% tax strictly on those gains.

[Bitcoin Smith]

You can convert the coins to a stable currency, hold them in your own private wallet, and then move them to an exchange to avoid any issues. The issue arises only if you deposit directly from a gambling or prohibited site.

We can do that but FIU-regulated exchanges also not letting the users to withdraw cryptos to their own wallets, I guess Binance is the only exchange still allows that but need details so users can do that in instant swap exchanges which can be expensive but we can be stress free rather than going through traditional exchanges and also need to keep track of the conversion until we sell them for INR.