Good times for the Indians who hope to earn a fortune on cryptocurrency trading have passed. Thousands of traders who made anonymous transactions with the virtual money received tax bills. The reason of such a harsh government measure was the financial report which showed that transactions worth over USD 3.5 billion were conducted in the past 17 months.
Remarkably, cryptocurrency trading in India is not banned officially. The government has only warned that investment in such assets is a rather risky affair. For the time being, the authorities decided to count the number of citizens, dealing with cryptocurrencies. The Indian tax department asked investors working with bitcoin and other cryptocurrencies to pay income tax and provide detailed information about their investments and financial sources. The tax officials also said that they cooperate with nine biggest cryptocurrency exchanges in India, so it will be difficult for traders to conceal their income.
Earlier, China announced plans to introduce more strict regulations of cryptocurrency trading. The PBOC official said that the government should ban centralized trading of virtual currencies as well as impose restrictions on individuals and businesses that provide related services.
