Again i just cannot believe that the total bitcoins in india is like 1% or so. In the early days of bitcoin, people did not really need specialized equipments to mine bitcoins - just their computers were enough and this is where we see early adopters who have many thousands of bitcoins and this apply to every country. when govt released a press note and when the buy/sell services did pause their operations obviously these early adopters are not trying to sell bitcoins on daily basis as they do not really need to - they are not trying to speculate and hence there was no price drop. When china released the statement, there was a huge fluctuation because in china - apart from early adopters like any other country, there were also way too many late adopters who had invested in bitcoins and were partially responsible for btc to go from 200 to 1200 in two months time.

At this present situation in India, the new businesses are not so much ready to accept bitcoin, investors are not ready to invest in bitcoin and the consumers are not ready to buy bitcoins for transactions. i should say in india - bitcoins have pretty much become stagnant. Till govt reacts to give more info about what they want to do, the situation continues to be stagnant and if this takes lots of time (we already know govt usually takes lot of time to react for every stimulus), then india would lose the opportunity and will stay behind in the race. so this is the exact reasons we need to make sure we hear more info from authorities as soon as possible (atleast in next few months time which itself is asap). On the other hand as bitcoin related activity continue to be stagnant, the authorities would obviously see no reason to react as there is no need to which is even more bad.

I can ofcourse see the early adopters disagreeing with me as they would have mined or earned a lot of btc while btc was very cheap or have purchased btc at very cheap rates, and they may have a few thousands of bitcoins that are sitting in their wallets and are willing to offer as much time needed for authorities to issue their statements as it kind of does not matter how long such statement takes to come out as it is not really necessary for them to sell bitcoins on daily basis and they would also have plan B of encashing bitcoins slowly in their life time at foreign exchange and getting the money to india just in case bitcoins gets termed as illegal in India. If you do not belong to this category and are depending on offering some products or services to make some bitcoins while equally loving bitcoin and india, you would not like the present situation of bitcoin being stagnant and you expect some actions at regulatory level as soon as possible so that you can move ahead with your projects and I belong to this category

From I T dept, Unocoin is not violating any rule and they are happy as long as they get income tax for profits earned at Unocoin. I T dept obviously cannot talk on behalf of other departments and they just advised me to take legal opinion before starting the its operation again. I am already in this process.

Another info i got to know is that it is ED that have advised IRS to investigate CoinMonk and Unocoin. Today I met the Nethrapal and a couple of his senior officers and had to explain how bitcoin works and how much it is trackable and how the exchanges can help them track bitcoin - so it again became a technical discussion than investigation on CoinMonk or Unocoin. Presently they have asked me to submit a paper describing how bitcoin works, how transaction works, how to mine bitcoins and what happens technically in bitcoin mining, to what extent bitcoins are traceable and what role an authorized exchange can play, how bitcoin can be misused and if it can be mitigated in some way, what is the view of bitcoin from various other countries, and my openion on how bitcoin can be taxed for speculators and miners. i will be working on this once i am back from mumbai - i m visiting mumbai for two days from tomorrow for a press meet along with nishith desai associates to talk about the present situation of bitcoin in india and asking authorities to react to the present situation asap through media.