Setting up BTC <--> INR exchange in India

[RFDZ]

Hi guys,

I am thinking of setting up a bitcoin exchange exclusively for Indians. Still working out the legalities of this. However, there are two options. Need your suggestions:

1. We will sell/buy BTC directly from users.
2. We will act as an exchange like MTGOX and act as an intermediary between the users.

Please point me to the right information for setting up something like this.
The idea is to make it easier to buy and sell bitcoins in India. Apparently it is easy to obtain bitcoins here but quite difficult to get rid of them.

Regards

[1714842789]

1714842789

[1714842789]

1714842789

[1714842789]

1714842789

[Benson Samuel]

The legality states that only Banking companies can accept cash deposits.
This is why a system like Mt Gox is not yet possible in India unless you can obtain a Banking/MSB licence.

With Brick and Mortar establishments being the weakest link in the Bitcoin economy, Anything centralized will be stopped by the authorities.

Getting rid of them will become easier in a few years for sure. Bitcoin is not a short-term plan for India.

In the mean-time, if someone can work around cash based pre-paid cards(Regulated as well) as a way to purchase them and get money from point A-B, That may be the low hanging fruit for India.

http://bensonsamuel.com/bitcoin-3/reserve-bank-of-india-regulations-on-bitcoin-in-india/

Also check out localbitcoins.com

Mt Gox is not an intermediary, they make a cut and accept deposits, which get them into quasi-banking.

[Benson Samuel]

You could also look at a few monetary systems like Ripple or Hawla.

http://bensonsamuel.com/bitcoin-3/a-decentralized-monetary-system-for-a-decentralized-currency/

[Amitabh S]

A good idea. Hope we see an exchange soon. Are all the bitcoiners from Bangalore here? (I know at least 3 are  )

[kreatous]

What i could advice you is become a escrow you could deposit money from the buyer and when the buyer receives the bitcoins you can release the funds to the sellers and work around with mt gox exchange rate..

[Benson Samuel]

I have been fortunte enought to have hosted escrow for a few transactions.

There is tremendous scope in Escrow.

[Benson Samuel]

A good idea. Hope we see an exchange soon. Are all the bitcoiners from Bangalore here? (I know at least 3 are  )

We need to start spreading a bit more.. Maybe we should target Bitcoin in Mysore as well.

[subvolatil]

I like this idea , i know we have no exchange in India yet , i am from delhi and looking for options to get a basic  exchange setup  here.  may be we  all can network together and  see if we can do  some thing about it,  i have been looking at the indian law  , the law  seems to  be regulating currency and payment systems  issued by a country or a specific company, payment system  regarding  credit cards and  payment system  like  the ones  created by pay pals.  but with bit coin it is decentralized not  issued by any  particular  person or government, i believe that the Indian government would not have any jurisdictional authority,  if we look  at the sale and purchase of  bitcoine as a product rather than a mode of currency , what the  person  does  after the purchase  will be his responsibility,
Another  added  bonus is that all  bit coin transaction is in the public domaine and  if the government cries that they cant know that  transaction happens then  our  response  would be to have them  pull up the transaction records  and connect the dots them self. 


Guys tel me what you think of this , and  do pm and lets see what we can  build.

[Benson Samuel]

An exchange for India is currently being built.

I am not sure about recent developments, but have been told that its release is not too far away.

[subvolatil]

Do you know who are doing this . and what market penetration they are focusing on.

[Benson Samuel]

I know who is working on it, but not aware of any more details.

The project is still at a nascent stage.

[StLucifer]

I know who is working on it, but not aware of any more details.

The project is still at a nascent stage.

ermm.. sooo Who is working on it?
Or is this information confidential? in which case nevermind.

[subvolatil]

well if any one wants to start a collaboration to setup a system, which would work for bitcoin lets start to discuss and have a model created, we can in a few month role it out and test it, if that model works then will be good if it has any fault  we can modify the model and try to see if other things would be required to make it work. remember the economy and social interaction in india is very different we need to incorporate, the digital with the physical.

[Benson Samuel]

I know who is working on it, but not aware of any more details.

The project is still at a nascent stage.

ermm.. sooo Who is working on it?
Or is this information confidential? in which case nevermind.

I will check with him if he can come on to the forum and post about it.

He had requested that no further information about this project be shared from my side.

[StLucifer]

This is very interesting.
Thanks benson!

I would at least like to know an approximate ETA for such an exchange, if nothing else.

[Benson Samuel]

This is very interesting.
Thanks benson!

I would at least like to know an approximate ETA for such an exchange, if nothing else.

It will be ready during the first half of next year.

It is currently at a POC state.

[vibs]

Hi,

I was introduuced to bitcoin by a friend in an MMORPG I play. Was interested in looking at it's status in India. Looks like things are in a nascent stage. I have been exposed to a few projects which could have easily incorporated a bitcoin kind of system in them. If someone is setting up an exchange in India, I would love to be updated about it. If there is some help that is needed let me know. I'm sure as a community, we can set up different aspects, right from the exchange to a market place to kick off this thing in India.

[vibs]

Just a quick question. Does anyone have an estimate of the bitcoins that are traded by Indians or in India? A ball park figure would suffice.

[Herodes]

Banking/MSB licence.

What would this cost in India ? I think the bitcoin community should go together and actually fund entities like this, it will spread bitcoin. When we have a problem working with the existing system, we should simply morph in with them. Banks are rejecting bitcoin business all the time, but if we own the bank, then we can't reject ourselves.

So, if it was established how much it would cost to get a Banking/MSB license, it could be crowdfunded.

[vibs]

Banking/MSB licence.

What would this cost in India ? I think the bitcoin community should go together and actually fund entities like this, it will spread bitcoin. When we have a problem working with the existing system, we should simply morph in with them. Banks are rejecting bitcoin business all the time, but if we own the bank, then we can't reject ourselves.

So, if it was established how much it would cost to get a Banking/MSB license, it could be crowdfunded.

I might actually have a solution around the licence part. But for that I need certain estimates of volumes. Need not be crowd funded cause the setup cost is low. But it would need volumes to justify it's existence to the authorities.