Bitcoin Forum

Well, I've just found this SHIT news floating on a sub reddit.
http://www.thehindu.com/business/Economy/use-of-bitcoin-illegal-says-govt/article17702483.ece?homepage=true

WTF is this? Another shit done by this NDA government or what? Like many other traders out there, I've invested heavily in BTC trading, and now this  >:( Fuck you government! I'm sure those who're making this decision don't give a shit about general public and only care about FIAT.

"RBI had warned that any user, holder, investor and trader dealing with virtual currencies would be doing so at his/her own risk"

They never said its illegal but they said that it isn't regulated by govt or RBI so anyone using bitcoin will fully responsible for their loss using this type of currencies.

I wouldn't have bothered to post here if that's the case, but it looks like this article has been edited since the time I've made this post. The title was "Use of Bitcoin illegal, says govt" which is now changed to "Use of Bitcoin, other virtual currencies not authorised by RBI, says govt."

Business Standard article linked here (https://bitcointalk.org/index.php?topic=1846403.0). Kirit Somaiya's tweets and questions in Parliament seem to have resulted in the government taking an adverse stand.

I can understand the disappointment in the present government and still they are winning in almost every state.BJP have a bad reputation of taking against anyone and enforcing their will on every religion and still they are winning elections shows us the damage Congress has done with their rule  :D
Use of bitcoin is not illegal in India and these sort of FUD news are circulating for some time and even i do get calls regarding that every now and then for clarification.

The RBI stand on the bitcoin has not changed since its earlier point of view. As of now if something goes wrong with bitcoin related trade customers are their own.

The article clearly states that :
.. Bitcoins is not authorised by the
RBI and could result in breach of
anti-money laundering provisions.
this implies that anyone using or trading bitcoin can be booked under money laundering Act.
Terrorism has been a menace since two decades without bitcoin.
Stupid move to blame bitcoin for terrorism.

Well I think even if they made it illegal there would still be some users who would use Cryptocurrency,
I mean they could not stop it there are huge number of people using it right now and it has a high demand.

I sense a bumpy ride ahead.

Wrong people holding positions of power.... Been happening for decades now.

Exactly. Relating Bitcoin with money laundering is crazy under current system. This is how a typical transaction takes place.

• I (trader) deposit fiat money in xyz exchange and buy BTC

Off-course, funding will be done via Internet banking and or use of credit / debit cards and no cash is involved in this scenario.

• I (trader) buy bitcoin for fiat money and then I can either withdraw in form of BTC or sell it for fiat and withdraw fiat in my bank account

Again, no cash transaction is taking place.

Not to mention; one has to verify his identity and go through KYC and AML before withdrawing and or depositing fiat.