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.
Yes, that seems to be point about incarceration.
From the Constitution ,
(20) Protection in respect of conviction for offences. (1) No person shall be convicted of any offence except for violation of a law in force at the
time of the commission of the Act charged as an offence, nor be subjected to a penalty greater than that which might have been inflicted under the law in force at the time of the commission of the offence.
(Electronic Page 5 of this file
http://lawmin.nic.in/olwing/coi/coi-english/Const.Pock%202Pg.Rom8Fsss%286%29.pdf)
So you may not be convicted for trading in bitcoins now, by the Government bringing in a retrospective law. But can they tax you with retrospective effect? What if they suddenly decide to pass a retrospective law stating that Bitcoin transactions are subject to 100% VAT. Aren't they well within their powers to do this? (I am thinking about the Vodafone case).