Can Bitcoins be regulated by RBI? What are the consequences going to be?

[nandubatchu]

BUT HAVING A BITCOIN ATM IS NOT ILLEGAL RIGHT?

[Fernandez]

BUT HAVING A BITCOIN ATM IS NOT ILLEGAL RIGHT?

Why do you keep posting in red caps? Can't you type normally like others?

[Benson Samuel]

BUT HAVING A BITCOIN ATM IS NOT ILLEGAL RIGHT?

Why do you keep posting in red caps? Can't you type normally like others?

Agreed. Stop typing in Caps and do not use red in everything.

[EternalWingsofGod]

BUT HAVING A BITCOIN ATM IS NOT ILLEGAL RIGHT?

No, it is not illegal except where Bitcoin is illegal
Everyone else says its OK

[btcxindia]

In India, commodity futures /forwards is regulated by FMC( Forward markets committee), which is under Minister of Agriculture. How it possible, agriculture ministry regulate Bitcoin?

Hence Bitcoin will never be considered as commodity.

[Benson Samuel]

In India, commodity futures /forwards is regulated by FMC( Forward markets committee), which is under Minister of Agriculture. How it possible, agriculture ministry regulate Bitcoin?

Hence Bitcoin will never be considered as commodity.

fmc can come into place in the event of volatility is what I am told.

Edit: This would not come up though as Bitcoin is not controlled by any government.

[BitCoinDream]

In India, commodity futures /forwards is regulated by FMC( Forward markets committee), which is under Minister of Agriculture. How it possible, agriculture ministry regulate Bitcoin?

Hence Bitcoin will never be considered as commodity.

What about Gold, Silver and other metal selling on MCX & NCDEX ? Does it come under FMC too ?

[deadley]

In India, commodity futures /forwards is regulated by FMC( Forward markets committee), which is under Minister of Agriculture. How it possible, agriculture ministry regulate Bitcoin?

Hence Bitcoin will never be considered as commodity.

What about Gold, Silver and other metal selling on MCX & NCDEX ? Does it come under FMC too ?

Gold, Silver or other metals and agriculture Commodities trading in MCX and NCDEX, all come under FMC. and stock market comes under SEBI.

[Fernandez]

In India, commodity futures /forwards is regulated by FMC( Forward markets committee), which is under Minister of Agriculture. How it possible, agriculture ministry regulate Bitcoin?

Hence Bitcoin will never be considered as commodity.

What about Gold, Silver and other metal selling on MCX & NCDEX ? Does it come under FMC too ?

Gold, Silver or other metals and agriculture Commodities trading in MCX and NCDEX, all come under FMC. and stock market comes under SEBI.

So its still not clear where Bitcoin is?

Its like gold, silver; but is not government controlled.

[buysellbitcoin]

In India, commodity futures /forwards is regulated by FMC( Forward markets committee), which is under Minister of Agriculture. How it possible, agriculture ministry regulate Bitcoin?

Hence Bitcoin will never be considered as commodity.

fmc can come into place in the event of volatility is what I am told.

Edit: This would not come up though as Bitcoin is not controlled by any government.

It does not mater whom FMC reports, what matters is their jurisdiction. Normally the definition of such terms like "commodity" comes as very generic and can easily accommodate almost any thing or, as in India normally the way it works, they can simply say that Bitcoin comes in their jurisdiction and if you disagree you have to challenge it in court.

Frankly speaking Bitcoin can not be regulated by any one body, its how you use it, how your application, business model defines it and provides instruments to end users to interact with is important and depending on that various bodies may have authority to regulate and approve business models. As a naive example IRDA will regulate any product related to insurance sector, does not matter related to Bitcoin or not. Same way if your business model defines it as commodity trading which allows users to speculate on it with exchange type of business model, FMC may come in. But strictly this is all speculation and nothing else. You must get legal counsel for your business model and, IF AND ONLY IF, ask for clarification, approval etc from authority if it requires one.

Regards

[nandubatchu]

I request someone to take a step ahead and file an online petition for considering Bitcoins in India. I am sure, India is going to loose a lot of the global economic rally if does not act swiftly regarding the regulation of Bitcoins. @Benson please start an online petition.

[Benson Samuel]

I request someone to take a step ahead and file an online petition for considering Bitcoins in India. I am sure, India is going to loose a lot of the global economic rally if does not act swiftly regarding the regulation of Bitcoins. @Benson please start an online petition.

I do not believe that it is correct to ask permission for a human right.
There are licences and legalities that need to be obtained, but there are routes for that.
This petition will not originate from me.

[adv.kanishk]

I would like to answer a few questions, in brief, from legal perspective and as per my understanding.

Q1-: Can bitcoin ATM be established in India?
Ans-: Bitcoin ATM cannot be established in India. ATM are being regulated by RBI guidelines and the reason why exchanges are being operated and not ATM is that bitcoin is not covered under Securities or Currency (As of date). However, RBI do have power to regulate the same as per power vested with them under the preamble. We can look into it for anyone who is interested to deeply understand the regulations behind it.

Q2-: Whether any exchange is working legally?
Ans-: I would not be able to comment on the working of any other exchange as of now. We are providing our legal services to one of our clients who has recently opened bitcoin exchange in india namely millibits. The Url is

https://millibits.in

We have advised our client to make people register with all the documents as per AML and KYC procedures.

Q2-: Petition for allowing bitcoin in India.
Ans-: I would surely not recommend it and the court would also not entertain it as something which has not been declared illegal yet. However, if RBI refuses to allow or regulate or makes it illegal, then doors of court can surely be knocked and I would surely be a part of it.

Q3-: Whether bitcoins are commodities?
Ans-: Bitcoins are not covered under any definition. We have studied the same and also given legal opinions to our client. What it is, is very elaborative and I cant explain it here.

Q4-: Can and will RBI regulate it?
Ans-: That is upto RBI and they need to know and formulate their stand on the same. However, they are takin tie because they know they eed to provide reasoning for refusing to regulate it.


I hope my replies or inputs can be useful to all the people in the trailing threads.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

[adv.kanishk]

Yes. Bitcoin can be regulated by RBI only and they may regulate it or ban it. BBut they would be required to do so with proper reasoning and that is for sure.

In case of any clarification please do let us know.
Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

[BitCoinDream]

I would like to answer a few questions, in brief, from legal perspective and as per my understanding.

Q1-: Can bitcoin ATM be established in India?
Ans-: Bitcoin ATM cannot be established in India. ATM are being regulated by RBI guidelines and the reason why exchanges are being operated and not ATM is that bitcoin is not covered under Securities or Currency (As of date). However, RBI do have power to regulate the same as per power vested with them under the preamble. We can look into it for anyone who is interested to deeply understand the regulations behind it.

Q2-: Whether any exchange is working legally?
Ans-: I would not be able to comment on the working of any other exchange as of now. We are providing our legal services to one of our clients who has recently opened bitcoin exchange in india namely millibits. The Url is

https://millibits.in

We have advised our client to make people register with all the documents as per AML and KYC procedures.

Q2-: Petition for allowing bitcoin in India.
Ans-: I would surely not recommend it and the court would also not entertain it as something which has not been declared illegal yet. However, if RBI refuses to allow or regulate or makes it illegal, then doors of court can surely be knocked and I would surely be a part of it.

Q3-: Whether bitcoins are commodities?
Ans-: Bitcoins are not covered under any definition. We have studied the same and also given legal opinions to our client. What it is, is very elaborative and I cant explain it here.

Q4-: Can and will RBI regulate it?
Ans-: That is upto RBI and they need to know and formulate their stand on the same. However, they are takin tie because they know they eed to provide reasoning for refusing to regulate it.


I hope my replies or inputs can be useful to all the people in the trailing threads.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

Thank u so much Kanishk for giving us the details from legal perspective. If we consider the case of LocalBitcoins.com or BitQuick.in, they work as escrow. They just hold Bitcoin and FIAT get transferred directly from buyer's account to seller's account. In this case, do u think as per Indian law, it is required to make people register with all the documents as per AML and KYC procedures ?

[Benson Samuel]

I would like to answer a few questions, in brief, from legal perspective and as per my understanding.

Q1-: Can bitcoin ATM be established in India?
Ans-: Bitcoin ATM cannot be established in India. ATM are being regulated by RBI guidelines and the reason why exchanges are being operated and not ATM is that bitcoin is not covered under Securities or Currency (As of date). However, RBI do have power to regulate the same as per power vested with them under the preamble. We can look into it for anyone who is interested to deeply understand the regulations behind it.

Q2-: Whether any exchange is working legally?
Ans-: I would not be able to comment on the working of any other exchange as of now. We are providing our legal services to one of our clients who has recently opened bitcoin exchange in india namely millibits. The Url is

https://millibits.in

We have advised our client to make people register with all the documents as per AML and KYC procedures.

Q2-: Petition for allowing bitcoin in India.
Ans-: I would surely not recommend it and the court would also not entertain it as something which has not been declared illegal yet. However, if RBI refuses to allow or regulate or makes it illegal, then doors of court can surely be knocked and I would surely be a part of it.

Q3-: Whether bitcoins are commodities?
Ans-: Bitcoins are not covered under any definition. We have studied the same and also given legal opinions to our client. What it is, is very elaborative and I cant explain it here.

Q4-: Can and will RBI regulate it?
Ans-: That is upto RBI and they need to know and formulate their stand on the same. However, they are takin tie because they know they eed to provide reasoning for refusing to regulate it.


I hope my replies or inputs can be useful to all the people in the trailing threads.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

+1

[Benson Samuel]

Yes. Bitcoin can be regulated by RBI only and they may regulate it or ban it. BBut they would be required to do so with proper reasoning and that is for sure.

In case of any clarification please do let us know.
Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

A quick suggestion, most of the startups are wary about legal fees that can be incurred with such a consultation.
It would be awesome if people also had some idea of what they may face in the event that they need to go all the way.

[adv.kanishk]

Yes. Bitcoin can be regulated by RBI only and they may regulate it or ban it. BBut they would be required to do so with proper reasoning and that is for sure.

In case of any clarification please do let us know.
Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

A quick suggestion, most of the startups are wary about legal fees that can be incurred with such a consultation.
It would be awesome if people also had some idea of what they may face in the event that they need to go all the way.

Samuel I am a bit confused whether you are asking about legal consultation for my services or fighting it after RBI refusal. For the former our consultation and opinions can be acquired by paying in bitcoins as well as by normal mode. We are also looking into various prospectives for the start ups in form of VC funding. Secondly, for the latter it will be hard to tell about the legal fee structure to fight it out in courts but, I think indian counterpart of this forum should definitely create a pool of money for any such anomaly that comes its way because in supreme court this kind of matter would definately have to be argued by a senior advocate and they charge quite well.

[Benson Samuel]

Yes. Bitcoin can be regulated by RBI only and they may regulate it or ban it. BBut they would be required to do so with proper reasoning and that is for sure.

In case of any clarification please do let us know.
Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

A quick suggestion, most of the startups are wary about legal fees that can be incurred with such a consultation.
It would be awesome if people also had some idea of what they may face in the event that they need to go all the way.

Samuel I am a bit confused whether you are asking about legal consultation for my services or fighting it after RBI refusal. For the former our consultation and opinions can be acquired by paying in bitcoins as well as by normal mode. We are also looking into various prospectives for the start ups in form of VC funding. Secondly, for the latter it will be hard to tell about the legal fee structure to fight it out in courts but, I think indian counterpart of this forum should definitely create a pool of money for any such anomaly that comes its way because in supreme court this kind of matter would definately have to be argued by a senior advocate and they charge quite well.

Agarwal, I have some pretty strong backing, so this is not for me at the moment.
I do think that this is a good service and not too many people have come into the forums to offer the same, even though there are several legal houses in India, who are working on Bitcoin.
Wish you all the best and you can count on me to help back any venture that you bring forward

[adv.kanishk]

My Bitcoindream friend I would require more facts than that and would also need to understand the working, in whole. If you want we can look into the whole business model you are working on and suggest you how to deal with it and draft necessary documents for you as well. PM me if you require legal assistance on that!!! 

I would like to answer a few questions, in brief, from legal perspective and as per my understanding.

Q1-: Can bitcoin ATM be established in India?
Ans-: Bitcoin ATM cannot be established in India. ATM are being regulated by RBI guidelines and the reason why exchanges are being operated and not ATM is that bitcoin is not covered under Securities or Currency (As of date). However, RBI do have power to regulate the same as per power vested with them under the preamble. We can look into it for anyone who is interested to deeply understand the regulations behind it.

Q2-: Whether any exchange is working legally?
Ans-: I would not be able to comment on the working of any other exchange as of now. We are providing our legal services to one of our clients who has recently opened bitcoin exchange in india namely millibits. The Url is

https://millibits.in

We have advised our client to make people register with all the documents as per AML and KYC procedures.

Q2-: Petition for allowing bitcoin in India.
Ans-: I would surely not recommend it and the court would also not entertain it as something which has not been declared illegal yet. However, if RBI refuses to allow or regulate or makes it illegal, then doors of court can surely be knocked and I would surely be a part of it.

Q3-: Whether bitcoins are commodities?
Ans-: Bitcoins are not covered under any definition. We have studied the same and also given legal opinions to our client. What it is, is very elaborative and I cant explain it here.

Q4-: Can and will RBI regulate it?
Ans-: That is upto RBI and they need to know and formulate their stand on the same. However, they are takin tie because they know they eed to provide reasoning for refusing to regulate it.


I hope my replies or inputs can be useful to all the people in the trailing threads.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

Thank u so much Kanishk for giving us the details from legal perspective. If we consider the case of LocalBitcoins.com or BitQuick.in, they work as escrow. They just hold Bitcoin and FIAT get transferred directly from buyer's account to seller's account. In this case, do u think as per Indian law, it is required to make people register with all the documents as per AML and KYC procedures ?