Lok Sabha Question No. 141 (UNSTARRED), answered on 2018-02-02
Subject: Virtual Currencies
Ministry: FINANCE
Asked by: GOPALAKRISHNAN CHINNARAJ, SANJAY HARIBHAU JADHAV, MANSHANKAR NINAMA, RANGASWAMY DHRUVANARAYANA, A. ARUNMOZHITHEVAN, NAGARAJAN P., SUNIL KUMAR SINGH, CHANDRAKANT BHAURAO KHAIRE

## GOVERNMENT OF INDIA MINISTRY  OF FINANCE DEPARTMENT  OF ECONOMIC  AFFAIRs LOK SABHA

## UNSTARRED  QUESTION  NO. 141 TO BE ANSWERED  ON 2ND FESRUARY,  2018  /  13TH  MAGHA 1939 (SAKA)

## VJRTUAL  CURRENCIES

## QUESTION

141. D.. C. Gopalakrishnan;  S/Shri Saniay Haribhau ladhav; Manshankar  Ninama; R. Dhruva Narayana; A. Arunmozhithevan;  P.Nagarajan;  Sunil Kumar  Singh;  Chandrakant  Khaire.

Willthe Minister of FINA'{CE be pleased  to nate :

- (a) whether  the online  trading of crypto-currencies  /  bitcoin  has increased rapidly in the country in the recent past, if so, the details thereofand  the reaction ofthe  Government  thereto;
- (b) whether  the Government  has any data on the volume of trade being transacted  through crypto-currencies/  bitcoins  in the country, if so, the detailsthereof  along with names  of cryptocurrencies  not recognized but are being used fortrade  purposes;
- (c) whether  the Reserve  gank  of lndia/ Government  has raised  concerns about the Bitcoin / virtual currencies  and has sought  inputs  on bitcoin retulation  from  public  followed by constitution  of an !nter-Disciplinary  Committee to look into the matter and suggest  measu.es to dealing with such currencies,  if so, the details  thereof along with the outcome  of the inputs/ recommendations thereof;
- (d) whether the covernment  is planning to enact a lav amend the present  law with regard to virtual currency and close the reSulatory  gaps  to keep a check on virtual  currencies including bitcoins, ifso, the details thereof  and thetimeline  for such enactmenv  amendment of law; and
- (e) whether the Goveinment  is considering to declare bitcoin  as illegal and the lncome  Tax Department  has issued  notices to people  who have invested  their money  in crypto-currencies /  bitcoins, if so, the details thereof along  with  the measures  taken bythe  Government to keep a check on illegal adivities through bitcoin  including action taken by the Government  againrt the erring Bitcoin  exchanges  in the country and ensure consumer  protection  ?

## ANSWER

## MINISTER  OF STATE  IN THE MINISTRY  OF FINANCE (SHRI  Pon. RADHAKRISHNAN)

- (a)  to  (b)  : The Government doesn't maintain data related  to tradinB  of Crypto  Currencies/ Bitcoins.
- (c)  to  (d) The Department  of Economic Affairs  had constituted an lnter-Disciplinary  Committee to take stock of the present status of Virtual currencies.  The committee invited feedback from public  and submitted  its report. Subsequently,  a Committee underthe  Chairmanship of sec.etary, Department  of Economic Affairs has been constituted  for deliberatinS over all issues  .elated to virtual  currencies  to  propose specific actions to be taken.  The Government has issued a statement on December  29, 2017 cautioning the people  a8ainst the risks  of investinB  in virtual currencies. The Reserve  Bank of lndia  has also cautioned the users, holders  and traders  of Virtual Cu rren cies from time to time, about the potential financial,  operational,  legal,  customer  protection  and security  related risks.
- (e) : The lncome Tax Department has conduded surveys u/s 133A of the lncome-tax Ast, 1961 on several Bitcoin/  Crypto currenc.y  exchanges  located  in Bengaluru,  Mumbai,  Delhi,  Pune and Hyderabad on 7!-72-2077 in the normal course  to collect data on participants  in Bitcoin/  cryptocu  rrency tra n sacations,  for verification.  Notices  under  the lncome-tax  Act, 1961 have been issued  in appropriate  cases.