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by vellasib 4562 days ago
The biggest concern they have is transactions which happen within Indian users. They will get absolutely no information about it. Although when finally someone realizes the money, it has to come to the bank, but taxes like Sales Tax/Service Tax (think chain of transactions), which are based on the transactions cannot be enforced.
2 comments
ashray 4562 days ago
But isn't that the same as selling something through OLX ?

I suppose the issue with buysellbitco.in was that it was missing some paperwork that it should have had because they were accepting people's money (INR) and selling bitcoins on a commercial scale.

I'm not sure why they said it violated foreign exchange acts though..

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sreevishwa 4562 days ago
>But isn't that the same as selling something through OLX?

Absolutely correct, which is why banning or restricting its transaction is not the solution. Bitcoin is equally anonymous as cash in this aspect.

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rikacomet 4562 days ago
the statement issues by RBI earlier, said that anyone who would be found to be dealing in bitcoin, would be considered violating FEMA. As someone said above, money laundering is a big issue in India. On the financial side of things, it is very hard even for seasoned "hawala" operators to launder any money. Bitcoin is undoing that in Indian context, no matter how you see it.

And the fact the silkroad used bitcoin, doesn't help things either.

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ashray 4562 days ago 

    the statement issues by RBI earlier, said that anyone who would be found to be dealing in bitcoin, would be considered violating FEMA
Where is this statement ? I only have: http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?pr...

Was there another statement from the RBI ?

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rikacomet 4562 days ago
Its there

"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. "

anti-money laundering = FEMA, there is no law called AML, there are two laws: FEMA & PMLA. As per the investigation, the right clauses are applied.

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rikacomet 4562 days ago
very good point. Yes, that is one of the big reasons, for RBI's stand. I have talked to someone in the recent past about their stand on bitcoin, and this was one of the main reasons.

What it means, is that no doubt, bitcoin has many advantages, but at the end of the day, its a "change". All change must come at a pace, acceptable to the mainstream society.

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