"Bitcoin exchanges are under fire in India, as many of the nation’s top banks have suspended or greatly curtailed functionality on exchange accounts. State Bank of India (SBI), Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have all taken strong action toward crypto exchanges, either closing accounts or severely limiting functionality. The banks cite the risk of dubious transactions, according to local reports.
The news follows the request of advocate Bivas Chatterjee who recently filed a public interest litigation (PIL) in Calcutta to impose immediate regulations on Bitcoin and other cryptocurrencies. Additionally, the Ministry of Finance referred to Bitcoin as a ponzi scheme before the end of last year.
The international mood toward Bitcoin has continued to tighten, particularly with US Treasury secretary Steven Mnuchin stating that the G20 nations will begin working together to make sure that Bitcoin and other cryptocurrencies are properly regulated."
"One in every 10 bitcoin transactions in the world happens in India". So this was much needed move. Regulations will clear the cloud around and bring more confidence among Indians regarding its authenticity. As th e World realizes bitcoin boom with its technology in 2017, it was obvious that Central Authorities will tend to regularize the crypto space in 2018 and so is India .
The total revenue of the top 10 exchanges in India could be about Rs 40,000 crore, according to tax officials scrutinising these companies.
"These exchanges tend to show the total volumes both on buy and sell side as their revenue. In many instances, the exchanges themselves buy and sell cryptocurrencies on their own platform," said an indirect tax official who is part of a team investigating the applicability of sales tax on Bitcoin exchanges for the previous financial year.
Many of the exchanges operate at a margin of close to 20%, according to the people. The profit comes from the premium charged by the exchanges, the difference in the buying and selling price and when the exchanges themselves get involved in trading.
This Government 's moves to curb this kind fraudulent activities is a good move for Bitcoin as it will make Bitcoins available to Indians at fair International Price. I use Zebpay to buy Bitcoin, but due to this issue i have face 15-20% loss when i move my bitcoins to global exchange.
This time ahead looks good for Cryptocurrencies to grow in India.