Both RBI and the government have issued warnings on bitcoin previously.The central bank's note asks banks to understand how such currencies work before dealing with such companies, sources said. "RBI has told us to carefully evaluate businesses of these cryptocurrencies, but the wording of the RBI letter does not prohibit us in dealing with bitcoins," said one of the persons. "For tax-related clarity, some bitcoin exchanges want to approach quasi-judicial bodies. "Even in cases where the accounts are not yet suspended, banks are seeking additional information and crosschecking every transaction. This follows direct tax and indirect tax departments scrutinising bitcoin exchanges.Industry insiders said bitcoin players earn revenue through commissions, transaction fees, or price-arbitrage opportunities.

Source: Economic Times January 25, 2018 02:15 UTC