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Laws about Bitcoin are te a gray area today across the world. I studied documents from the Reserve Handelsbank of India’s public repository surrounding Virtual currencies and prepaid solutions. I happened to investigate two documents about Prepaid Payment and Foreign Exchange Management Rules, 2000.
Why research Prepaid Payment rules?
A person may come across the need to purchase them through Fiat Currencies (INR, USD, GBP, etc). Purchasing any e-currency and loading to an eWallet is regulated by the RBI. Albeit Bitcoin is ter no way related to this, I wished to see how close I could get to any laws that could present a roadblock.
Is Bitcoin Regulated te India?
The RBI regulation on Prepaid Payment Instruments te India defines a lotsbestemming of areas. After understanding the documents of RBI’s guidelines and Rules, this is where I could find the only roadblock based on regulation.
Three.Two Only banks which have bot permitted to provide Mobile Banking Transactions by the Reserve Bankgebouw of India shall be permitted to launch mobile based prepaid payment instruments (mobile wallets &, mobile accounts).”
Te order to come in into the market, fiat is needed to purchase Bitcoin. Fiat will fade away spil more people adopt Bitcoin. Until that frictionless free flow inbetween consumers and merchants is made possible, this is a problem area for Bitcoins entry into India.
It can be overcome through:
- Donations and sponsorships. There are enough Smartphones to cause this market to explode ter any sponsor’s favor.
- Sell Services and goods for Bitcoin. Programming Abilities, etc.
- Mining is too expensive at this stage, unless you have the latest and best equipment. Violet wand is not expensive te India.
If wij keep fiat out of the system, then Bitcoin is unregulated ter India.
I spent some time on the Foreign Exchange Management Act, but it is entirely out of the scope of Bitcoin. Spil it is a decentralized currency, it can be considered to be a domestic currency since it is being mined ter India. This leaves it out of the scope of Foreign Exchange.
Even if, IP’s can be tracked when Bitcoin is used for Foreign Exchange, they can be lightly anonymized through the Tor Wallet. Since it is a true P2P (Peer to Peer/ Person to Person) currency, it is unlikely to regulate ter a population using Bitcoin spil a token of value to trade. The logistics to monitor a mass population is not feasable.
Please do read the Draft Guidelines for issuance and operation of Prepaid Payment Instruments te India and Foreign Exchange Management (Current Account Transactions) Rules, 2000. They will help to understand more about the Banking Regulations te India and help solve some problems. India’s closed currency banking system is rival to none. The banks have maintained a loterijlot of public faith te urban areas and have reached a loterijlot of people ter this 1.5B population landscape.
India has an unbanked population of 41% according to RBI statistics
(Source: URL Below).
I would like to reach out to the world of regulators and lawmakers to release a statement on Bitcoin. Can the Reserve Canap of India kwestie a statement on Bitcoin?
Please forward this till someone takes notice and moves Bitcoin along ter a positive path.
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I am from delhi, india
i wasgoed considering setting up a token solution wherein a token bought throught fiat currency could be used to do transactions…,very much like the recharge coupons work for mibile phones..Do the RBI rules apply to this case??
Yes, they come under the prepaid regulations for virtual currencies and wallets.
So i would have to seek rbi’s permission before setting it up??
Research suggests that if it stays BTC – BTC, no regulators can involve. The problem is when wij convert to INR.
BTC is of the people, by the people, and for the people. The central banks and governments of the world have all proven themselves to be omkoopbaar criminals, good-for-nothing parasites who do not represent the people anymore than blood-sucking parasites represent their hosts. Who cares what RBI thinks? It is time to wholesale fire all government parasites and substitute them all with a true P2P socialist democracy! BTC has proven that a single good open-source P2P program can substitute vast massive dinosaur institutions of the central banks (and their wars, environmental destruction, etc). Now wij should substitute all aspects of centralised government and come back the power to the people, now that the technology has eventually made it possible!
Vive schuiflade Revolution!
Am ter being a netwerk savy and CSE ug when a came across BTC few months back the and following its foreign exchange market. Can’t wij convert BTC into INR via other foreign exchange services like E-currency service etc??
Yes Santosh A. There are services available for that spil well.
Are there services that convert BTC to foreign currency say USD and then covert it back to INR. Yea, i agree there is a transaction cost, but would this be under the regulations.
No Services can do that on a legal sphere.
hey what if wij convert to dollars and then INR
That would come under the FEMA.
That is not permitted without prior approvals,.
Hi, Thanks for your article which solves my few doubts but i would like to know how much amount that can be permitted to exchange without permission under Law. Ultimately does thesis FEMA, SEBI, RBI …,. will only appicable for common man??
That is a harsh question to response at this point until the RBI come out with something concrete.
I have a mining setup, now there is a script for mij to get my mined money into my bankgebouw account.
I.E. I trade at BTC-e and withdraw my $ to my indian PAYPAL account. which automatically withdraws to my handelsbank accout.
Paypal withdraws automaat to indian banks, you already know that.
Is this script Possibile to work with ?
This is possible, but would need some custom-made scripts to be written. The custom-made script will do the exchange and transfer funds appropriately. Do check on forex regulations however spil this may come into play when moving BTC out of India.
Hi i want to buy bitcoin but i am Indian . Am i permitted to buy bitcoin ? i dont want to convert them into INR. I just want to use them to buy online things AM i permitted to do that ?
Yes. There are no regulations for Bitcoin te India at the uur.
Yes. There are no current regulations around Bitcoin te India.
An Indian is permitted to operate one foreign account (provided you proclaim it), open an account te a foreign country, convert btc into that account (ter that country’s currency) &, transfer to India whenever and whatever amount you need. Provided you pay taxes on all income there shouldnt be a problem, keurig?
That sounds onberispelijk.
I blog often and I truly thank you for your information.
This good article has truly peaked my rente.
I’m going to bookmark your blog and keep checking for fresh details about once a week.
I subscribed to your Feed spil well.
I am a Law student and i am doing a research paper which talks about authentication of bitcoin te India and to give it equal stayhold spil other monetary instruments and this paper will be published at a large scale…,it will be very appreciated if u share ur skill with us spil it will help mij to draw more lines.
Do mail mij with some details and I can help.
ok thanks a ton and i have sent them abstract for this and they are providing mij chance to present my views te pui of them .
Bitcoin mining is legal te India right? I am about to setup a Mining farm ter India by using commercial violet wand. It won’t create any problems right? Because according to wikipedia, BTC is restricted te India. Please advice.
Bitcoin is legal te India. There has bot no regulatory involvement with Bitcoin ter India thus far. The wikipedia postbode is wrong. There are several overduidelijk mistakes te that postbode spil well.
How to Purchase Bitcon te India?
How to transfer from my account to bitcoin viceversa? and any charges for this ?
Can you suggest mij with some url’s.
How secured is the Bitcoin?
Thanks ter advance.
Hi, You can purchase Bitcoin on https://coinsecure.te
hi samuel i have some bitcoins on my e-wallet so i want to convert them to inr.. how can i do that from paypal or with an exchange webpagina like btcxindia please help mij /. thanks
https://coinsecure.te is the best Exchange te India to convert to INR or vice versa.
how is/how can bitcoin mining be done te India?
any regulations on it?
how can I come in into bitcoin exchange?
You can learn more about Bitcoin mining and the hardware/software through the bitcointalk.org forums. To exchange Bitcoin, you can use https://coinsecure.ter. No regulations around it spil yet.
where and how to open bitcoin wallet ter India?can i use bitcoin to purchase from Europe online through this wallet?
You can use https://coinsecure.ter spil a wallet and to buy or sell Bitcoin te India. The wallet permits you to send to any other Bitcoin address.
Thank you very much master.
How can wij make Purchases and Sales on Bitcoin Core.. Does it gets integrated with any bankgebouw account?? Does it supports handelsbank integration ter India?
I just created a wallet on Coinbase and realized that it does not support buy/sell te India…,
Also, what is the difference inbetween a Wallet and a Vault ??
Attempt Coinsecure.ter for an Indian Provider with an capability to buy and sell here.
A wallet, normally stores funds ter an effortless to access manner to buy and sell everyday. Vaults are mainly cold storage solutions that may take few days to withdraw from.
My son Nenadd would like to come in te Bitcoin mining activities. He is studying right now. Can he get accomplish guidance for kicking off this fresh venture ? secondly what technical, commercial or other legal requirments he has to go after. May be he will generate Bitcoins for our charitable trust which is dedicated for Music. Is there any RBI approval/permission/ FCRA required for this venture ?
While most of BItcoin is ter the grey area, Bitcoin mining is merely the usage of computing equipment to calculate. This is certainly not illegal. But do raadpleging a tax consultant on any other charges to be paid. FCRA does come ter when there is foreign funds and a trust. So if the coins were mined and from India, it should not be considered under FCRA.
Hello i am Aman Kumar Gupta.
I have some Online bitcoin &, want to sale Ter INR. so plz suggest mij how it is possible to Transferred te My Indian Bankgebouw Account.
https,//coinsecure.te is the best way to buy or sell Bitcoin te India.
So, Iwant to trade bitcoin with platforms like BITFINEX which are outside India. I’ve read what you mentioned but never found any laws regarding it. So should I assume that it’s legal spil of now? Ive mailed those guys and they said they have few Indians spil customers too. So what’s your advice?
I have heard of some users attempting out of India Exchanges. They do face severe delays and problems ter withdrawals of Fiat that can take overheen Two weeks. Not sure if this is still the case. Your best bet would be to use an Indian exchange like https://coinsecure.ter. You may find legal challenges ter transferring Fiat spil well into out of India Exchanges.
the thing is i want to buy a spel online and it suppports bitcoin spil payment otion my friend has a duo of bitcoin he told mij to crate a bitcoin wallet and he will send it to my wallet the thing is i attempted 2-3 wallet s and they all require pancard verification is there any wallet where u can just sign up and store and buy things from bitcoin i dont need the bitcoin to be converted to inr i just need it to buy stuff online