After China’s exit from the Crypto Currency Markets and Banning the trades in Bitcoins, all the focus has shifted to India. There is a growing awareness and adoption of bitcoin in India. However, revenue authorities are concerned about the potential for abuse by tax evaders and money launderers.
Income tax authorities and the Enforcement Directorate, an economic law enforcement and intelligence agency, are specifically looking into significant investments into buying the cryptocurrency following last year’s unprecedented demonetization effort which saw nearly 90% of India’s physical cash rendered obsolete overnight.
The magnificent growth in popularity of Bitcoins and adoption of Bitoins pushed the government into establishing a ‘virtual currency committee’ to study and advise government on regulating the digital currencies in India.