Crypto exchanges have gained lot of interest worlwide. The Indian tax department may soon start collecting capital gain tax from traders who gain from Bitcoin investment. The tax department has observed that cryptocurrency price surge recently. The volatility related to Bitcoin has been receded which is a viable reason for Bitcoin to be monitored by the Tax department. Cryptocurrency’s steady increase may result in a normal tax return depending on short term and long term investment. Currently, investment in cryptocurrency goes under the other sources of income.

“The tax authority can also monitor earnings of cryptocurrency investors registered through KYC/AML compliant exchanges like CoinDCX and through national identity documents such as the PAN card,” Sumit Gupta, CEO of Mumbai-based cryptocurrency exchange CoinDCX, told CoinDesk.

RBI Verdict on Crypto 

In March, the Indian Supreme Court has overturned the ban on Cryptocurrency. The Supreme Court of India passed judgment on 4th March 2020 striking down the Reserve Bank’s April 2018 circular which bans regulated financial institutions from providing services to crypto businesses. The judgment accelerated the adoption of cryptocurrency rapidly in India. Several Crypto Exchanges rushed to re-integrate banking solutions and bring back INR support through bank accounts. Adoption of cryptocurrency is rising. According to Jesse Powell, the CEO of Kraken, the market cap of the entire cryptocurrency industry will eventually hit $1 trillion. There are no such services that use blockchain for escrow service combining cryptocurrencies and fiat. The potential market size is already more than a trillion USD which is growing in accordance with the global trade.

BSI and Fintech Development 

Business Software has prolific real-time experience in developing successful exchanges in the Fintech world. We are acclaimed by our clients globally. Exchanges developed in blockchain boilerplate and automated KYC & AML  feature addition build robust exchanges. Fraudulent activities in the monetary system and specifically in the crypto world is a

Tackling Fraudulent Activity

This is the most significant feature that can prevent possible fraudulent activity in exchanges. With the meteoric rise in scams and phishing activities, it is important to place as much safeguard possible to secure users. As the majority of the users are not too familiar with technologies and, associated benefits and threats. They often go loose on security which often ends up in compromise with their accounts. The platform should have the basic implementation of some security to safeguard the interest of users. Email is one important factor for users and communication. Most of the time 2fa authentication is extremely hard to bypass, but at the same time users forget to enable it. Most of the platforms don’t force users to use that as most of the users are not familiar with the authenticators. Especially its nature of beings completely independent and untethered to any data source, making it almost impossible to breach but at the same time making it impossible for the account owner to access his/her account in case (s)he loose his/her device where the authentication software was installed and ifs (s)he doesn’t have a backup of the key for the same authenticator. Which may introduce an astronomical number of support requests for the platform. So, keeping that in mind, by default email/mobile-based OTP may be in place in case a user doesn’t have 2fa enabled. Also, since email is an important factor for user identification and communication, a cooling time of 24 hrs for changing the email should enhance the security for users and save them from possible scams or phishing attacks.