The notice was issued to the central bank by the market regulator, the tax department, and several other agencies, according to the Hindu, an Indian newspaper. The original petition to the court expressed concern that Bitcoin can be used to conduct transactions across borders without a trace, making it an attractive tool for ransomware attackers and tax cheats.
The petition goes on to state that Bitcoin exchanges in India add 2,500 users per day, and that some 500,000 residents now hold Bitcoin. Furthermore, the document also included the fact that some countries are beginning to either regulate or ban Bitcoin, citing Chinas crackdown on exchanges and Russias attempts to block Bitcoin websites.
According to CoinDesk, so far, India has typically adopted a “wait-and-see” stance on cryptocurrencies, discussing their role in the worlds largest democracy but not taking concrete steps to regulate or prohibit them. In April 2017, the government formed a committee to study cryptocurrencies and propose new regulations.
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