Indian Bitcoin Exchanges Suspend Operations

[Swapster]

Several Indian bitcoin exchanges have pulled the plug and halted trading following a statement issued by the Reserve Bank of India (RBI) on Tuesday.

The RBI warning advised consumers and investors to steer clear of bitcoin, citing numerous risks associated with digital currencies. The list of concerns outlined by the RBI was more or less standard – lack of regulation, security issues, rampant speculation and volatility. The RBI also pointed out that Indian bitcoin exchanges are operating without regulatory approval, which is hardly surprising given the fact that India does not have a regulatory framework that would encompass digital currencies.

http://www.coindesk.com/indian-bitcoin-exchanges-suspend-operations-following-rbi-warning/

And yet, BTC up….. logic out the window.

[yatsey87]

Read about India 'banning' bitcoin earlier, but this just seems to be just issuing advice to stay away from it as opposed to banning it.

[dopey]

Good analysis of the report.

This is basically the same warning other governments issued. It seems to of simply of taken a bit longer to reach India.

[Swapster]

It may be a warning, but exchanges are heeding the warnings and shutting down. As well, it will steer investors away.

We need the exchanges to get people moved from fiat to Bitcoin.

I have a US exchange built and ready to go, but I can't risk opening due to the regulatory burdens in the US. As an exchange you must register as money transmitter in all 50 states, requiring surety bonds in each state - a lot of money - and all of that is upfront BEFORE you can get a bank to work with you. To think I pay these assholes their salary.

[smoothrunnings]

Several Indian bitcoin exchanges have pulled the plug and halted trading following a statement issued by the Reserve Bank of India (RBI) on Tuesday.

The RBI warning advised consumers and investors to steer clear of bitcoin, citing numerous risks associated with digital currencies. The list of concerns outlined by the RBI was more or less standard – lack of regulation, security issues, rampant speculation and volatility. The RBI also pointed out that Indian bitcoin exchanges are operating without regulatory approval, which is hardly surprising given the fact that India does not have a regulatory framework that would encompass digital currencies.

http://www.coindesk.com/indian-bitcoin-exchanges-suspend-operations-following-rbi-warning/

And yet, BTC up….. logic out the window.

Please before you report on this you need to know someone in India who uses bitcoin in some why to get their side of story as the western media lies about things only allow us to hear one side of the story when there are three sides to every story. They did the same thing with China yet people are allowed to trade in bitcoin still and China is still beating the US in daily trading.

So plant your feet on the ground in India before talking about things like this otherwise its just hearsay.

Thanks,

[Swapster]

I'll leave the foot planting to CoinDesk and other media outlets. You can make up your mind if you feel the story is trustworthy or not.

[Swapster]

http://www.thehindu.com/business/Industry/bitcoin-operators-shut-shops-in-india-amid-rbi-warning/article5504407.ece

You can google it… tons of stories on it. Pretty sure it is accurate and factual.

[Swapster]

And nail in the coffin so to speak, an actual Bitcoin Exchange in India has a message to it's users:

https://buysellbitco.in

"Post the RBI circular, we are suspending buy and sell operations until we can outline a clearer framework with which to work.This is being done to protect the interest of our customers and in no way is a reflection of Bitcoin's true potential or price."

[cr1776]

It may be a warning, but exchanges are heeding the warnings and shutting down. As well, it will steer investors away.

We need the exchanges to get people moved from fiat to Bitcoin.

I have a US exchange built and ready to go, but I can't risk opening due to the regulatory burdens in the US. As an exchange you must register as money transmitter in all 50 states, requiring surety bonds in each state - a lot of money - and all of that is upfront BEFORE you can get a bank to work with you. To think I pay these assholes their salary.

What about teaming with these people:
https://bitcointalk.org/index.php?topic=360549.40

Then, like casinos they operate, they are in their own tribal nation?

[theecoinomist]

I think people overestimate India, let's not forget the avg yearly salary is below $1300 over there..

[CoinGroin]

How big of a deal is this?  Is it a good thing that this kind of news comes out before BTC takes off there in contrast to China?

[kwoody]

India is all like "don't use BTC" and BTC rises in value roughly 15% the next day. Sucks to be India.

[coins101]

When the officials figure out how to download then use wallets and how to accept "marketing" contributions in BTC, then they will allow it.

Did some work in India. Like China, you have to show respect [generosity] to people and their customs.

They haven't figured out yet that it is less likely to get caught with BTC.

[visionary]

its too smaill

Less than 200,000 dollars in trading volume

[Phinnaeus Gage]

For flushed Indians, there's...



For those in a lower caste, there's Bitcoin.