Post
Topic
Board India
Re: Questions About Indian Crypto Exchanges: Indx & BitBns
by
mihir
on 20/02/2018, 06:01:39 UTC
I don't think it is possible to operate an exchange without being KYC complaint in India. With an excessive amount of black money circulating within the country, it will be pretty easy for them to invest and gain interest. Any exchange will have to be KYC compliant and have AML policy in place in order to report to government body if anything seems suspicious.
Remember, an exchange must only exchange the products between its customers, not a place to sell your own products. So, there must be a track record of where the particular crypto has come from and where is it going? Because few days back we saw a sample in which Income Tax department was asking for all the details regarding when you bought bitcoin, from which exchange and much more. Maybe, it was fake but the point is that at some point in time, government and Income Tax department will ask for the details as to impose Capital gain Tax.

Long story short, KYC is must in order for smooth flow of bitcoins and other cryptocurrencies in the Indian market and to avoid the illegitimate actions otherwise anybody can do anything for bitcoins and will easily sell it at Indx for fiat money. Also, scammers will pull off a heist in the name of ICO and have their money liquidated in no time because there is anonymity.