IRS visit to CoinMonk Ventures registered office in Tumkur

Today (December 31st 2013 at 11.30am) there was a visit from IRS headed by a Deputy director, Income tax department – Investigation wing, Bangalore. Out of that two guys had attended bitcoin conference on Dec 15th.

After they completed their formal procedures by the team, they checked some CoinMonk Ventures registered objectives and also KYC documents of Unocoin customers.

Then there was a dicussion on bitcoin and its mining, technical possibility to apply income tax to miners and bitcoin business in general, possible regulation at entry and exist level at exchanges.

I have provided them some documents related to bitcoins and KYC collected from Unocoin customers as per their instructions.

A summons issued to have me visit them in Bangalore. All i can say regarding today discussion is, I was able to lead it in as positive way.

Info on visit to I T dept office in Bangalore on 1st Jan 2014: Met with a couple of higher authorities and the discussion was around technology and traceability. Presently they have instructed me to submit a paper describing how bitcoin works, how transaction works, how to mine bitcoins and what happens technically in bitcoin mining, to what extent bitcoins are traceable and what role an authorized exchange can play, how bitcoin can be misused and if it can be mitigated in some way, what is the view of bitcoin from various other countries, and my opinion on how bitcoin can be taxed for speculators and miners. I will be working on this once i am back from Mumbai.

I did question IRS Dy Director that if he knows any law or clause that we are violating if we continue our Unocoin service as long as I T department is concerned and declare income and pay income tax for which he has replied that we should be fine for now. How ever he said he cannot talk on behalf of other departments and have asked me to take legal opinion before I start Unocoin service again – and I am in the process of doing so.

I am visiting Mumbai for two days from tomorrow for a press meet along with Nishith Desai associates to talk about the present situation of bitcoin in India and asking authorities through media to react to the present situation asap.

– Sathvik Vishwanath

Founder CEO of CoinMonk Ventures Private Limited

Temporary buy and sell suspension

Post notice from RBI Unocoin has decided to temporarily pause its buy and sell operations. All the pending orders today gets fulfilled and no more orders will be accepted till further notice. This is done to protect our valuable customers from getting into unintended legal risks.

Logins from the users is suspended as well for time being.

You can contact us on [email protected] if you need any further clarification.

– CoinMonk Ventures – Unocoin Team

Reserve Bank warns against Bitcoin use

From THE HINDU dated Dec 24th 2013

The Reserve Bank of India, on Tuesday, warned the public against the use of virtual currencies such as Bitcoin, pointing out that users expose themselves to potential financial, legal and security related risks.

The public advisory comes after the borderless digital currency has begun to gain widespread acceptance in India, despite poor Internet penetration and a natural scepticism to assets not backed by tangible entities such as land.

The central bank also said that it had been “examining the issues associated with the usage of virtual currencies” under the legal and regulatory framework of the country.

In its list of potential risks, the apex bank highlights problems such as losses arising out of hacking, no sources of customer recourse and the general financial volatility surrounding Bitcoins.

“The creation, trading or usage of virtual currencies including Bitcoins are not authorised by any central bank or monetary authority. As such, there is no established framework for recourse to customer problems,” the RBI said in a statement.

“It has also been reported that Bitcoins are being traded on exchange platforms, whose legal status is also unclear. Hence, the traders of virtual currencies are exposed to legal as well as financial risks,” it added.

Gaining currency

Bitcoins, and other virtual currencies, have been gaining currency quickly in India. According to SourceForge, an online platform that connects consumers to open-source projects such as Bitcoin and facilitates client downloads, there have been 35,648 downloads in India since the launch of Bitcoin on November 9, 2008.

A number of India-based trading platforms and exchanges have sprung up over the last six months, catering to Indian users by allowing them to purchase Bitcoin in rupees. The RBI, however, has pointed out that no regulatory approval has been obtained by any entities that carry out such activities.

“There have been several media reports on the usage of Bitcoins for illicit and illegal activities. The absence of information of counterparties could subject users to unintentional breaches of anti-money laundering,” the central bank said.

The mainstream Bitcoin community in India has welcomed the RBI’s shift from its earlier ‘wait-and-watch’ policy, and believes that specific regulation may be in the offing.

“Of course, it is good that the RBI has shifted from not saying anything to warning people of the risks involved. Yes, trading platforms in India do not have approval, as there is no regulation in the first place! We believe this advisory notice may be a precursor to some regulation,” said Satvik V, Founder, CoinMonk Ventures, who organised India’s first Bitcoin conference earlier this month.

Unocoin Launched


Unocoin successfully got launched at the Global Bitcoin Conference 2013 held at Sheraton hotel in Bangalore in front of 150 deligates. As of now we have applied strict buying and selling limits on all accounts while we ease out any small remaining issues that could arise during real transaction processing that was not identified during our beta testing. We look forward to go full fledged in about 2 weeks time.

Unocoin Screenshots

Here are some of the high resolution screenshots of Unocoin service to give you a glimpse of what you can expect while being a customer of Unocoin. Identity and details used in the screenshots is for demo purposes only. Media and blogs can use these images in their publications.

homewalletsend-bitcoinsrequest-bitcoinsbuy-bitcoins  sell-bitcoinsinvoicepurchase-infobuy-merchendize profile  two-factor-auth    trade-history quick-calcs