Quote from: adv.kanishk on November 25, 2014, 04:10:09 PM

Quote from: bitconftw on November 20, 2014, 01:09:15 PM

ok, so consider 2 options:-

1. you trade outside exchanges. you give your bank account number to a buyer and sell him bit coins. he *knows* your identity because you gave him a/c number. if the government decided to have a negative stance on bit coin, they would look for active bit coin buyers/sellers and get hold of them and then get other contacts out of them.

2. you trade inside exchange. you give them your identity for KYC.
if the government decided to have a negative stance on bit coin, they would raid exchanges and get your info and contact you.

which option is better?please give me your opinions.

and micky123, bit coin's nature is lost when you convert it to rupees. i am talking about bit coin traders(those who sell/buy bit coins and deal with *rupees*). so i was talking about taxation from a rupees perspective. obviously government can't tax bit coins. it is if i convert it to rupees that i should tell the government about it.

I my opinion as a lawyer it is better to use the exchange as a mode of trading. Mainly because of two reasons-:

1. Trading through exchanges eliminates the risk of getting cheated. there are many people in this forum who have been cheated by one or various persons.

2. If you are trading in white money then it is always to have a paper trail which you can always refer to in case you want it. As I think most of the exchanges would be keeping a record of your transactions.

Now the second party of fear which every normal trader has "What if authorities take an action against us" -: As a lawyer I should save it for telling in my opinions for legal fee but since community as a whole has this issue I would like to tell that no government agency can arrest you for trading in bitcoin. Any regulation which may come in future cannot be in effect with retrospective effect (back dated). So if government bans it on 1.4.2016 (Example only) then any person who traded before 1.4.2016 cannot be incarcerated. Hope this information encourages people to trade in bitcoin without a sword hanging on their head.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252

Thank you for pitching in and sharing this information. I always had a little bit of a guilt and worry when trading in BTC as it may be subject to Govt. intervention in the future. This bit of information has set my mind at ease. I can now trade in BTC without any fear. Just to counter this possible incursion, every transaction in my BTC wallet has a note attached which explains where the funds come from or to where i send them. Grin