Bitcoin Forum

As we all know that Indians have very limited sources like Zebpay, Unocoin etc. to buy bitcoins in India. Due to reasons like Demand > Supply or complicated & time consuming procedures to buy bitcoins from international exchanges, Indian exchanges / wallets always keep their prices way higher than those of international exchanges. Even peer to peer platforms like localbitcoins & coinsecure have high prices.

So, I am planning to buy bitcoins from international exchanges. But if I buy from a foreign country & sell it here in India (for arbitrage purpose), it will be like importing foreign goods & selling it in your country. So, what legal formalities like obtaining a specific license, filling forms etc will I have to do in order to do avoid any legal issues? ??? Also kindly throw some light on taxation.

Kindly wait for the govt decision first about the bitcoin . What if govt decides that since this currency is not controlled by any one so such currency India cannot allow to exists in India. So a ban in place may come. Then what the purpose once the ban comes you cannot trade in India and this thread will be actually in no use.

You are right buddy but the Government is unlikely to ban cryptocurrencies in India. You can find this news on Google as well as Youtube. Many newspapers as well as news channels have said the same.

Blanket ban on bitcoins is out of the question.

What govt can regulate is the business built around bitcoin like exchanges, payment processors, etc.

Govt might place some tax or a compliance regulation for business operating on bitcoin.

If one wants to invest in bitcoins (buy and hold) no need to wait for Govt announcement.

If starting a business involving bitcoins then it's advisable to waith till some clarity comes from Govt.

Well said. I think even cryptocurrency users will come under some regulations like sending or receiving coins from abroad. 

BTW can you please answer the question I have asked here?

hi i have been wondering about the same question regarding arbitrage. i plan to do the same.

in my view, the hurdle you will face is how to transfer the money from India to abroad.

you can easily buy btc overseas and transfer to your Indian wallet (unocoin, coinsecure, etc), and then sell on indian exchange. then you will request withdrawal from the exchange, which can take 2-3 days as i understand. this is where it gets risky - withdrawal happens to your indian bank account (and here is where indian authorities can question the sudden influx of funds into an a/c).

in light of the current absence of regulations, you may do so at your own risk. i plan to do so in small quantities to test the waters.

Remember the 2013 case of Ahmedabad where ED raided a bitcoin seller as he had violated FEMA? I think its more about FEMA rather than the sudden influx of funds into your account. I asked my CA but he has no idea about it. I think consulting an advocate before getting into it would be right.

how have these guys gone unnoticed? http://economictimes.indiatimes.com/small-biz/money/14-5-m-in-coins-to-grow-this-bitcoin-blockchain-fund/articleshow/58939461.cms (http://economictimes.indiatimes.com/small-biz/money/14-5-m-in-coins-to-grow-this-bitcoin-blockchain-fund/articleshow/58939461.cms)

One is a simple minded dolt if they think FEMA has to do anything with Cryptos. These are not designated currencies by our gov. so they dont come under the purview of FEMA regulations. The 'sudden influx of funds' can be described as profit from software consulting. 100% Freelancers use that code and it is suggested.

TIP : Dig the forum and read older posts. This is not facebook. Older posts, events, opinions and outcomes to certain events and the speculation for the various causes of such events are all well documented here. Please. Read. Research.