On November 27, 2018, we submitted a report regarding Unocoin to the Prime Minister’s Office, the Ministry of Home Affairs, the Ministry of Finance, and the Reserve Bank of India. Since May 2015, Unocoin has been exchanging cryptocurrency (Bitcoin) for Indian Rupees. For the financial year ending March 31, 2018, the total revenue amounted to INR 203,469,982 (Rupees Two Hundred Three Million Four Hundred Sixty-Nine Thousand Nine Hundred and Eighty-Two Only), with a profit before and after taxes of INR 2,600,992. It appears that the company has concealed the true nature of its business, which involves the exchange of Bitcoin in India, and has submitted false statements in its Income Tax return.
False Statement: The company claims to be engaged in developing an online marketplace for facilitating and conducting the buying, selling, storing, and trading of goods, whether using cryptocurrency or any other software based on the Internet or intranet, both domestically and internationally. It also claims to provide consulting services in software and IT-enabled services, including data centers. However, there has been no change in the nature of its business. According to union government laws, virtual currency is not considered legal tender and therefore lacks regulatory permission or protection in India. In his budget speech on February 1, Finance Minister Arun Jaitley stated that the government intends to take measures to discontinue the use of Bitcoin and other virtual currencies in India, reaffirming that these currencies are not recognized as legal tender.