Don't Panic Stay Calm!
Ok people dont panic, That was only a Press release to state what could be the dangers to the consumers on using bitcoin.
When they said
No regulatory approvals, registration or authorization is stated to have been obtained by the entities concerned for carrying on such activities.
It is a typical post war thinking of the license Raj.
Bitcoin Exchanges do not require licences to run, if that happens legitimate business will have to close down shutters and then the underground black market run by criminals will thrive.
What would be done is, participation by every exchanges to provide KYC documents and provide active assistance to law enforcement agency to track down potential criminals.
The last point made in the press release that makes every one step back is
There have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities in several jurisdictions. The absence of information of counterparties in such peer-to-peer anonymous/ pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws.
the problem is that law abiding citizens are the one backing down, the criminals can still get hold of bitcoin through many other channels.
But, the main point i want to make here is that Bitcoins are not anonymous. every transaction is recorded forever.
the easiest way to track down money laundering and criminal activities to by have exchanges follow Proper KYC and anti-money laundering protocols. Exchanges are the point where bitcoins can be protected from criminal elements. you remove exchanges then back alley transaction will start taking place. and if that happens then good luck tracking down the "Money Launderers"
systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism
This point implies to users of bitcoins, which is valid. For businesses as long as they have proper paperwork of their users then they are fine.
Edit:
The Reserve Bank has mentioned that it has been looking at the developments relating to certain electronic records claimed to be “Decentralised Digital Currency” or “Virtual Currency” (VCs), such as, Bitcoins, litecoins, bbqcoins, dogecoins etc., their usage or trading in the country and the various media reports in this regard.
Bitcoin is not in any way a Virtual currency "VC", or a “Decentralised Digital Currency”, Damit it is a Cryptocurrency.dogecoins Are you kidding me?
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p.s - INRBTC as long as you are not dealing with INR directly you are ok to run.
