Bitcoin Company Owner Investigated?

[sidjourn]

After posting this yesterday -- https://bitcointalk.org/index.php?topic=385566.0 -- and getting a handful number of response that everything will be alright, I ignored the rest of the news.

However, today on DNA I see that Enforcement Directorate  raided the premises of Mahim Gupta in Bopal area of the city who provides trading platform through his website -‑ buysellbit.co.in.

The article further states: “We have found that through the website 400 persons have recorded 1,000 transactions that amount to a few crores of rupees. We are gathering the data of the transactions, name of the people who have transacted in the virtual currency from Gupta’s server that is hired in the US. At present, we believe that this is a violation of foreign exchange regulations of the country. If we are able to establish money laundering aspect then he can be arrested,” said a top ED official.

Link to the complete article: http://www.dnaindia.com/india/report-first-time-in-the-country-ed-raids-a-bitcoin-seller-in-ahmedabad-1941187

What is going on?

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[Benson Samuel]

The charges are not against using Bitcoin, but ML.
From my understanding, Mahin only bought from people in India and sold to them from that stock which should absolve him of this.

As the document states, he has not yet been arrested.

[legendster]

Exactly, what is going on ?
A customer of mine bought the news to me when I woke up and I thought it was a fake rumor and I thought it'd be a good point to laugh at but now all the links & stuff is making me a bit edgy as well.

[legendster]

The charges are not against using Bitcoin, but ML.
From my understanding, Mahin only bought from people in India and sold to them from that stock which should absolve him of this.

As the document states, he has not yet been arrested.

But why was he detained anyway ?
and ignore my naive-ness what is ML ? Money Laundering ?

So I am a part of the underworld now ? yay

[Benson Samuel]

Just spoke to Naavi, seems like this is a standard procedure to investigate if a large Hawala/ ML operation has been kept in place.

He feels that as long as all procedures were maintained, it would take a lot of 'law twisting' in order to hit Bitcoin itself.

This too shall pass!

[legendster]

They come to my home and I'll give them a jar of dirt and sing the Jack Sparrow Song

I m a part of the underworld, I m a part of the underworld oh wait .. LOL

[devansh1991]

"On Thursday, ED raided the premises of Mahim Gupta in Bopal area of the city who provides trading platform through his website -‑ buysellbit.co.in. During the preliminary investigation, the ED found that it is in clear violation of Foreign Exchange Management Act (FEMA) rules of the country as central bank does not provide permission to indulge in such transactions."

This article makes it pretty clear that running a btc exchange is illegal.

[BTCIndia]

Just spoke to Naavi, seems like this is a standard procedure to investigate if a large Hawala/ ML operation has been kept in place.

He feels that as long as all procedures were maintained, it would take a lot of 'law twisting' in order to hit Bitcoin itself.

This too shall pass!

Amen!

[laserwolf]

The charges are not against using Bitcoin, but ML.
From my understanding, Mahin only bought from people in India and sold to them from that stock which should absolve him of this.

As the document states, he has not yet been arrested.

Not ML, forex. to quote:

We are gathering the data of the transactions, name of the people who have transacted in the virtual currency from Gupta’s server that is hired in the US. At present, we believe that this is a violation of foreign exchange regulations of the country.

I think they are implying that, because the server is in the US, this can be considered under FEMA.

[bitcoinisfurture]

Hey there were two places ED raided, and at second place due to  owner unavailable they have sealed that place.  Was that the place of rbitco.in who is sort of scam person as per other thread.

[Benson Samuel]

Hey there were two places ED raided, and at second place due to  owner unavailable they have sealed that place.  Was that the place of rbitco.in who is sort of scam person as per other thread.

I think so.

[Neo.op]

Here's my two bit on this:
1. In the conference held in Bangalore, people - specially Mahim was asking RBI/government to give him a clarification on how his website stood in terms of service. Whether it was financial institution or not? A big mistake, never seek attention of Indian government. They are not very friendly for things they don't fully understand. I used to work for Alpari - a forex broker - they got shafted just for doing this.
2. NEVER, repeat, NEVER run a financial like services in India if you are not ready to do a full KYC. It just opens you up for hawala and FEMA/AML related legal issues.
If you still want to run one and don't have manpower to do a full KYC. Make sure you don't touch Indian currency.
Frankly, out of all the Indian conversion services being run, INRBTC admin should be the safest person. He never took Indian rupees, nor sent Indian rupees (unless he had some of his own trades on the platform).

[escrow.ms]

Here's my two bit on this:
1. In the conference held in Bangalore, people - specially Mahim was asking RBI/government to give him a clarification on how his website stood in terms of service. Whether it was financial institution or not? A big mistake, never seek attention of Indian government. They are not very friendly for things they don't fully understand. I used to work for Alpari - a forex broker - they got shafted just for doing this.
2. NEVER, repeat, NEVER run a financial like services in India if you are not ready to do a full KYC. It just opens you up for hawala and FEMA/AML related legal issues.
If you still want to run one and don't have manpower to do a full KYC. Make sure you don't touch Indian currency.
Frankly, out of all the Indian conversion services being run, INRBTC admin should be the safest person. He never took Indian rupees, nor sent Indian rupees (unless he had some of his own trades on the platform).

+1

In my opinion banglore conference attracted a lot of attention of India Media and Government.
Ps: INRBTC used to buy/sell before but he did changes and converted it into a p2p trading platform.

[americandesi]

Yes. I agree with it partly.
The bitcoin conference did a lot of good as well as bad things. Do you think, the conference could have waited until RBI took a clear stand.?

It attracted a lot of media attention even abroad that India is the first country to host bitcoin conference. Nowehere they mentioned that it was some traders in India who were hosting it. By reading the news article (headline) atleast, media portrayed as though Indian Government was hosting it. Am sure that has pinched someone in the RBI.

[newIndia]

And more reports are coming - http://timesofindia.indiatimes.com/business/india-business/First-time-in-India-bitcoin-traders-raided-in-Ahmedabad/articleshow/28008526.cms

[devansh1991]

this article says that buysellbitco's company was registered at a fake address   

[escrow.ms]

Some days ago someone reported that there was a RBI guy in conference. I am not sure what people (speakers) said about bitcoins there, but I guess they took "Anonymous transactions" "decentralized" features as a bad thing and this kind of action was expected as buysellbitco.in's monthly turn over was pretty huge.

[bitcoinisfurture]

This may go against the Bitocins.

ED officials claimed that Gupta's company was registered on a fake address.

The officials also sealed the office of rbitco.in after its proprietor Nilam Doctor was not available. (Hope just at that time he was not available and not running away like his site rbitco.in) else there may arise a big trouble for bitcoin community.

[devansh1991]

the articel mentions a turnover of rs 20-30 crore spread over 400 ppl..dat is rs 7-5 lakh per person on an avg

[devansh1991]

all these 400 users wud be subjected (i am guessing) to questioning...that is how the article sounds !!!