vellasib

Yea, Upworthy uses pretty much all these tricks.

The biggest concern they have is transactions which happen within Indian users. They will get absolutely no information about it. Although when finally someone realizes the money, it has to come to the bank, but taxes like Sales Tax/Service Tax (think chain of transactions), which are based on the transactions cannot be enforced.

You can't go around banning stuff to curb tax evasion, this does not solve the root cause.

I don't see anyone getting into trouble, as long as the money which you used to purchase bitcoins from them was not already stained.

Of course, people who bought using these sites might have the ED Scanner go over them, but again, nothing to worry unless you have undeclared assets or anything otherwise illegal.

Indians can still do a wire transfer to MTGox and purchase bitcoins.

I feel sorry for this guy.

I've bought bitcoins from him in the past and I think he was doing a good job, at least for ensuring that his services are not used for money laundering.

ID and address verification documents were needed and a copy of the PAN Card was also taken.

Since all payments are made via bank accounts, It won't be difficult for ED to list out the bitcoin traders even if they were not collecting this information. I wonder how the website's users would be impacted.

Correct, Calling Bitcoin as illegal is absolutely rubbish.

They want to give Bitcoin the same treatment which they gave to PayPal that is, make it unusable.