India has become the latest Asian country to launch a quiet clampdown on bitcoin users. While not legally outlawing bitcoin, many bitcoin users and traders are set to be hit with heavy tax rates as the state takes steps toward the financial regulation of markets and exchanges.
“We cannot turn a blind eye. It would have been disastrous to wait until the final verdict was out on its legality … We found that investors were not reflecting [cryptocurrency gains] and in many cases, the investment was not accounted for,” Balakrishnan
The countries tax department carried out investigations quietly by visiting a number of exchanges around the country requesting details of customers and their transaction history as well as any financial records of individuals held by the cryptocurrency exchange. India remains one of the biggest consumers of crypto with over $3 Billion worth of trades done in bitcoin alone, the bank has stepped up its activities to regulate bitcoin trade.
Bitcoin in Asia
China has recently put its foot down on bitcoin users too with increased regulations being hit on exchanges. Furthermore reports coming from miners around the country also indicate energy prices being driven up for the majority of miners. Seemingly confirmed by the movements of Bitmain operations from china to Europe, in the form of a subsidiary, although no official statement has been released by the Chinese parliament with regards to bitcoin regulation.
To conclude,. the position of bitcoin remains strong despite the controversial moves by the Indian government. Despite highlighting money laundering and terrorism as the main motive for the current wave of tax impositions, many regard the movements as simple data collection by the state to identify the majority of crypto users around the nation.