A Special Investigation Team (SIT) of the Government of India, which is targeting black money, has reportedly given direction to three top agencies to clamp down on cryptocurrency operation and circulation in the country and trace suspected connections to shady offshore transactions.
In a meeting recently held in New Delhi, the SIT asked the Income Tax Department, the Enforcement Directorate (ED) and the Narcotics Control Bureau (NCB) to detect and stop crypto transactions being done over the Internet, including those with cross-border ramifications, PTI reported quoting official sources.
"The government is the final authority to frame rules and law to regulate these virtual currencies and the SIT would provide its report to it on the subject."
During the meeting, NCB revealed that it busted four cryptocurrency-fueled drugs smuggling transactions in the last two years.
The Income Tax Department said raids were conducted on bitcoin exchanges across the country last year.
According to SIT, cryptrocurrencies like bitcoins are illegal.
Across the world, there has been heightened concerns over softcoins and their safety as they are not regulated by any governments or central banks, leading to concerns over money laundering, and misuse by terrorists.
Several bank have banned the transaction of cryptocurrency using their debit or credit cards. They have also stopped or suspended accounts of bitcoin exchanges.
Cryptocurrency exchanges in India have witnessed a deep fall in trading on bitcoin this year, with some exchanges suspending trading until the authorities come out with clarity in market regulation.
The global picture also is bleak as far as Bitcoin is concerned, as the most popular cryptocurrency has lost two-third of its value since December 2017 when it reached a peak price of $ 19,535.
by Joji Xavier
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