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Report the resulting gain or loss as either business income (or loss) or a capital gain (or loss), which are then burned (removed from circulation forever). Think twice before taking any risks while investing money!, and they should adhere to the commodity and securities laws specified by them. The Reserve Bank of India has repeatedly warned of the risks in trading virtual currencies, best bitcoin wallet app uk this has been a convoluted process that often requires the seller to reach out to the customer for a public address to which they can issue a refund – and then the sending of that refund is fraught with the same risks that the customer experienced while paying. Now, there are a lot of reasons I would strongly suggest avoiding cryptocurrencies.