RBI Finally Issues a caution

[Benson Samuel]

http://www.nextbigwhat.com/rbi-on-bitcoin-and-virtual-currency-in-india-297/

[BTCIndia]

Detailed report can be found here:
http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30247

Thank for the guidance RBI!

[rezurect]

http://www.thehindu.com/business/Economy/rbi-warns-against-bitcoin-use-in-india/article5497653.ece

A number of India-based trading platforms and exchanges have sprung up over the last six months, catering to Indian users by allowing them to purchase Bitcoin in rupees. The RBI, however, points out that no regulatory approval has been obtained by for carrying out such activities.

“There have been several media reports on the usage of Bitcoins for illicit and illegal activities. The absence of information of counterparties could subject users to unintentional breaches of anti-money laundering,” the central bank said.

Not a very nice charge to be charged with, for operating an exchange.

[Benson Samuel]

http://www.thehindu.com/business/Economy/rbi-warns-against-bitcoin-use-in-india/article5497653.ece

A number of India-based trading platforms and exchanges have sprung up over the last six months, catering to Indian users by allowing them to purchase Bitcoin in rupees. The RBI, however, points out that no regulatory approval has been obtained by for carrying out such activities.

“There have been several media reports on the usage of Bitcoins for illicit and illegal activities. The absence of information of counterparties could subject users to unintentional breaches of anti-money laundering,” the central bank said.

Not a very nice charge to be charged with, for operating an exchange.

They do not understand yet that a currency is not being sold here.

Indian laws do define digital currency or virtual currency, so we will have to look at the traditional definition of currency to see if Bitcoin falls in that definition. The term currency is defined in section 2(h) of the Foreign Exchange Management Act, 1999 (“FEMA”) in the following words:
““currency” includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, travellers cheques, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the Reserve Bank;”

[techguy]

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.

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Wow                    doge                                      
           So much            doge

U                 have                          so               much                  craze               in            India...............       as well

[upal]

I dont understand why they are calling it a currency !!! Bitcoin is more like an asset, I guess.

[subvolatil]

I dont understand why they are calling it a currency !!! Bitcoin is more like an asset, I guess.

noops it is not an  asset . 

[BTCIndia]

I dont understand why they are calling it a currency !!! Bitcoin is more like an asset, I guess.

Bitcoin is more like virtual fluid that'll be flowing in future international payment system.

[Benson Samuel]

Bitcoin does not fall under currency, security, derivative or pre-paid instrument under the definitions of the current regulatory regime.

This means that absolutely anyone apart from NGO's who are guarded by the FCRA can accept Bitcoins for services/ goods and consider it as barter.
The problems lie in certain types of barter, ie, Illegal stuff, etc.
When the barters happen, they will more likely catch the eye of SEBI rather than the RBI, as most of Bitcoin is not in the scope of the RBI.

What the RBI can do is to issue large warnings and keep people's larger interests in mind. They also have the ability to adopt Bitcoin and start their own Exchanges, Trade points, Collection methods, etc..
People need to get more and more educated about the technology before it can actually make an impact.

[subvolatil]

Bitcoin does not fall under currency, security, derivative or pre-paid instrument under the definitions of the current regulatory regime.

This means that absolutely anyone apart from NGO's who are guarded by the FCRA can accept Bitcoins for services/ goods and consider it as barter.
The problems lie in certain types of barter, ie, Illegal stuff, etc.
When the barters happen, they will more likely catch the eye of SEBI rather than the RBI, as most of Bitcoin is not in the scope of the RBI.

What the RBI can do is to issue large warnings and keep people's larger interests in mind. They also have the ability to adopt Bitcoin and start their own Exchanges, Trade points, Collection methods, etc..
People need to get more and more educated about the technology before it can actually make an impact.

Warnings from the government is some thing i welcome. Warnings keeps the total idiots out.

Regarding the  RBI adopting Bitcoin and starting an exchange would  give  a legitimacy to bitcoin and  giving the Legal INR less value. there for they will not  do that. 

[Arnab biswas]

who has a lot of money...will consider bitcoin as a accet...but who don't trust or has upto in their $1000...wallet will generally take it as a currency #upal

[erikalui]

RBI isn't going to accept Bitcoin as a currency as in legal terms, bitcoin is not a currency but is more like a trading virtual currency that has a vlaue in USD and depends on the market demand. It's just like owning a share in the stock market.

[gkv9]

RBI isn't going to accept Bitcoin as a currency as in legal terms, bitcoin is not a currency but is more like a trading virtual currency that has a vlaue in USD and depends on the market demand. It's just like owning a share in the stock market.

I don't think like that as I saw somewhere in the news that our Governor himself said on Bitcoins that they might consider using Bitcoins in future for sure.

Quote by Raghuram Rajan (Governor): “I have no doubt that down the line, we will be moving towards primarily a cashless society and we’ll have some kind of currencies like this which will be at work. For us at the Reserve Bank, this may happen in 10 to 20 years from now. think these virtual currencies will certainly get much better, much safer and over time will be the form of transaction, and that’s for sure.”

More below:
https://www.cryptocoinsnews.com/indian-reserve-bank-governor-bitcoin-fascinating/