Looks like they are not getting Bitcoin

[Benson Samuel]

http://timesofindia.indiatimes.com/business/india-business/Chidambaram-for-plugging-regulatory-gaps-in-financial-sector/articleshow/20203564.cms

Sounds like Bitcoin to me as per the quote below. But with limited or no understanding of the technology involved.

"The present arrangements have a number of gap areas, where no regulators are unambiguously in-charge, such as issue of regulatory oversight over diverse Ponzi schemes that we have discovered recently. These are cleverly designed to be out of the purview of regulatory agencies," he said.

[axorb]

Could be a reference to a a big scam in West Bengal , I don't remember exactly , but it was some kind of Ponzi scheme

[Benson Samuel]

Could be a reference to a a big scam in West Bengal , I don't remember exactly , but it was some kind of Ponzi scheme

But that was a regular one. The main thing that caught my attention was where they have mentioned

These are cleverly designed to be out of the purview of regulatory agencies

[drdanishkhan]

Whats the worst case scenario here??
Edit. No income tax for me yet 

[Pinwheel]

Popularization of bitcoins in India will result in prohibition of bitcoins and criminalization of the whole area. From government point of view it is illegal alternative remittance system.

When it happens, we all know whom to blame for that. 

[Benson Samuel]

Popularization of bitcoins in India will result in prohibition of bitcoins and criminalization of the whole area. From government point of view it is illegal alternative remittance system.

When it happens, we all know whom to blame for that. 

I do not think it will be any different from what ECB and finCEN have done.

Regulations, KYC, AML at the most.

[Pinwheel]

Popularization of bitcoins in India will result in prohibition of bitcoins and criminalization of the whole area. From government point of view it is illegal alternative remittance system.

When it happens, we all know whom to blame for that. 

I do not think it will be any different from what ECB and finCEN have done.

Regulations, KYC, AML at the most.

first person to go to jail will be buysellbitcoins, next they will  get frozen all bank accounts of people who has done transactions with him.

Indian business model based on prohibition. Once it will come to their attention, I have little doubts what will be the next. 

[Pinwheel]

look what is happening in China

China Telecom to block all Bitcoin related traffic to China?
https://bitcointalk.org/index.php?topic=214227.msg2246351#msg2246351

[Benson Samuel]

Popularization of bitcoins in India will result in prohibition of bitcoins and criminalization of the whole area. From government point of view it is illegal alternative remittance system.

When it happens, we all know whom to blame for that. 

I do not think it will be any different from what ECB and finCEN have done.

Regulations, KYC, AML at the most.

first person to go to jail will be buysellbitcoins, next they will  get frozen all bank accounts of people who has done transactions with him.

Indian business model based on prohibition. Once it will come to their attention, I have little doubts what will be the next. 

I cannot see the same happening.

In the event that there is a new introduction into a financial space which does not look legit, the RBI/ Court will first issue a cease and desist warning. If the business does not comply with the warning, that is when trouble starts.
This has not happened as yet, although certain banks have been getting curious.

Also, There has been no Ponzi, no complaints or no damage done to any individual through actions till date, hence, I cannot see this as a large problem.

What we need to be ready for, is a disclosure of Bitcoin income for taxes. But that is only for sellers/ buyers who use a centralized service.

There is absolutely no documentation on what can be done if physical goods/ digital goods are sold for Bitcoin. That is the eventual place where it needs to be at. Where people trade on a daily basis rather than speculate.

[Benson Samuel]

look what is happening in China

China Telecom to block all Bitcoin related traffic to China?
https://bitcointalk.org/index.php?topic=214227.msg2246351#msg2246351

I read it some time ago and it looks like FUD. If you check the link, no Chinese nodes have been affected.
http://blockchain.info/ip-log

May be a US company doing this.

But it will be interesting to watch any new developments.

[Benson Samuel]

look what is happening in China

China Telecom to block all Bitcoin related traffic to China?
https://bitcointalk.org/index.php?topic=214227.msg2246351#msg2246351

I read it some time ago and it looks like FUD. If you check the link, no Chinese nodes have been affected.
http://blockchain.info/ip-log

May be a US company doing this.

But it will be interesting to watch any new developments.

Maybe not FUD, but very very early reports.

[Dashing]

Hmm, this had to happen sooner or later, huge amounts flowing from everyones (bitcoin) wallets everyday, government has to find a way to stop/regulate it, which will be difficult to block it on the network level, people can use VPN, TOR etc, so they'll start a crack down, one by one, each person caught will reveal more, expose more people involved, few addresses and mobile numbers will reveal a lot :/

 

[Benson Samuel]

Hmm, this had to happen sooner or later, huge amounts flowing from everyones (bitcoin) wallets everyday, government has to find a way to stop/regulate it, which will be difficult to block it on the network level, people can use VPN, TOR etc, so they'll start a crack down, one by one, each person caught will reveal more, expose more people involved, few addresses and mobile numbers will reveal a lot :/

 

U saying they may go after every single person with a satoshi?

That is impossible, it would be like trying to regulate marijuana.. and we know how well those regulations work.

[Dashing]

Hmm, this had to happen sooner or later, huge amounts flowing from everyones (bitcoin) wallets everyday, government has to find a way to stop/regulate it, which will be difficult to block it on the network level, people can use VPN, TOR etc, so they'll start a crack down, one by one, each person caught will reveal more, expose more people involved, few addresses and mobile numbers will reveal a lot :/

 

U saying they may go after every single person with a satoshi?

That is impossible, it would be like trying to regulate marijuana.. and we know how well those regulations work.

No, what I mean is they'll catch one person, make him spill a few beans about a few more people he has traded with or knows has bitcoins, soon one by one the list will grow.

or they will catch 1 person and make a good example which will make others fear the same

[Pinwheel]

try to understand, they cannot control bitcoins, so they will prohibit it, declare it illegal, it is very simple. It is what they do always. Any remittance out of courtly is strictly regulated, they will not let this to continue. for example if you want to buy house abroad you can remit 200K usd, not more then that, and it is after subtitling all required documents. Do you think they wil tolerate remittance system which will allow to anyone to remit millions of dollars out of the country  without them knowing it. No way!!!

there is no way to regulate bitcoins or control it for them, prohibition is easy. Accounts frozen money seized perfect and correct, government cracked down illicit remittance system.

they will use any pretend, and act, like war on_ter_ror and prohibit it. they will put put it in same basket with hawala.

[Benson Samuel]

try to understand, they cannot control bitcoins, so they will prohibit it, declare it illegal, it is very simple. It is what they do always. Any remittance out of courtly is strictly regulated, they will not let this to continue. for example if you want to buy house abroad you can remit 200K usd, not more then that, and it is after subtitling all required documents. Do you think they wil tolerate remittance system which will allow to anyone to remit millions of dollars out of the country  without them knowing it. No way!!!

there is no way to regulate bitcoins or control it for them, prohibition is easy. Accounts frozen money seized perfect and correct, government cracked down illicit remittance system.

they will use any pretend, and act, like war on_ter_ror and prohibit it. they will put put it in same basket with hawala.

Remittance one area where they can demonize Bitcoin.

But they can't do much if it is sold as a commodity or a product. Every regulation tells us this.

Hawala is not entirely illegal BTW. https://secure.interpol.int/Public/FinancialCrime/MoneyLaundering/hawala/default.asp

The remittance laws dictate how Hawala can be used.

[Dashing]

try to understand, they cannot control bitcoins, so they will prohibit it, declare it illegal, it is very simple. It is what they do always. Any remittance out of courtly is strictly regulated, they will not let this to continue. for example if you want to buy house abroad you can remit 200K usd, not more then that, and it is after subtitling all required documents. Do you think they wil tolerate remittance system which will allow to anyone to remit millions of dollars out of the country  without them knowing it. No way!!!

there is no way to regulate bitcoins or control it for them, prohibition is easy. Accounts frozen money seized perfect and correct, government cracked down illicit remittance system.

they will use any pretend, and act, like war on_ter_ror and prohibit it. they will put put it in same basket with hawala.

yeah, I know they cannot control it, its peer2peer like torrents, like I said in my previous reply,

Hmm, this had to happen sooner or later, huge amounts flowing from everyones (bitcoin) wallets everyday, government has to find a way to stop/regulate it, which will be difficult to block it on the network level, people can use VPN, TOR etc, so they'll start a crack down, one by one, each person caught will reveal more, expose more people involved, few addresses and mobile numbers will reveal a lot :/

Hence the reason I feel they'll do what they usually do, find 1 person and make a example out of that person :/

[subvolatil]

try to understand, they cannot control bitcoins, so they will prohibit it, declare it illegal, it is very simple. It is what they do always. Any remittance out of courtly is strictly regulated, they will not let this to continue. for example if you want to buy house abroad you can remit 200K usd, not more then that, and it is after subtitling all required documents. Do you think they wil tolerate remittance system which will allow to anyone to remit millions of dollars out of the country  without them knowing it. No way!!!

there is no way to regulate bitcoins or control it for them, prohibition is easy. Accounts frozen money seized perfect and correct, government cracked down illicit remittance system.

they will use any pretend, and act, like war on_ter_ror and prohibit it. they will put put it in same basket with hawala.

You  raised a good  issue  here, pinwheel. the  government going ahead and baning  bitcoins, is the most the government  can  do, but  before that, they will do every  thing to stop the conversion of bitcoin to INR and vise-versa.

The initial concentration will be through the money laundering act. to hit out on  individual and businesses. Which was the reason i posted in  the main section about paying taxis properly. [Benson you should  pin that so that every one reads it and  does start paying taxis on INR part of the bitcoin transactions].

When that wont  work  they will go  after the banks that are  working   with bitcoin based  companies.  mainly freezing  accounts.

then they will go out  for the ultimate kicker. world  governments  coming  together  and getting  global agreement on curtailing the use of  bitcoins.  or regulating it. The global regulation is the one  i'm scared of,  it bassically would let you  use  bitcoins but the  rules may require people to  register your  addresses before use. making  unregistered addresses illegal. But that is some thing  which  wont  happen for the next 10- 20 years.

[Dashing]

and yeah what Pinwheel said is true, they'll hit the people where it hurts the most, their bank accounts, freezing bank accounts would be the best course of action for them I guess

EDIT : I think we should not give the govt. more ideas now by discussing more ways they can control bitcoin lol

[subvolatil]

Hmm, this had to happen sooner or later, huge amounts flowing from everyones (bitcoin) wallets everyday, government has to find a way to stop/regulate it, which will be difficult to block it on the network level, people can use VPN, TOR etc, so they'll start a crack down, one by one, each person caught will reveal more, expose more people involved, few addresses and mobile numbers will reveal a lot :/

Hence the reason I feel they'll do what they usually do, find 1 person and make a example out of that person :/

Not  giving a  reason to the government is the best  solution. Paying  and filing  proper returns. increase using  bitcoins for  purchases of  goods and services within the country. and adding  more  people  into this would help in convincing the government  the benefits  of the masses using bitcoins.