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RBI Warns Against Use of Bitcoins

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  • RBI Warns Against Use of Bitcoins

    In a recent report, the central bank of India, RBI cautioned the use of Bitcoins.

    They stated:
    1. The Reserve Bank of India advises that it has not given any licence or authorisation to any company to operate such schemes or deal with bitcoin or any virtual currency.
    2. The Reserve Bank is presently examining the issues associated with the usage, holding and trading of virtual currencies under the extant legal and regulatory framework of the country.
    3. The creation, trading or usage of virtual currencies, including bitcoins, as a medium for payment are not authorised by any central bank or monetary authority.

    A bit of caution for Indian users. There is nothing to worry, but its clear that the RBI is keeping a watch and users involved in illegal activities should be careful.

    Cheers!

  • #2
    It’s not something to be overly concern about, but definitely not the greatest of sign, as it must be noted. India is a massive country and Bitcoin can be hugely popular there, but it might not be given proper space due to the policy, as illegal activities are too much with it and that I definitely believe can be harmful for any country especially Asian countries, so it’s a very high concern thing for future of Bitcoin.

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    • #3
      For once, I believe they are right with the worry they have shown since it’s quite evident there is a whole door available for illegal activities and money laundering, so I 2nd to what RSI mentioned, as the concern should be there for all not just for India.

      It will be very interesting to see how things go ahead because in next couple of years because the more popularity we see it getting, the more countries will start looking at it seriously which might be good or might be bad.

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      • #4
        Wow! That is really bad! Why RBI/Indian government is against everything?

        There are restrictions on forex, usage of international cards issued from other countries, etc. etc. Why can’t they let small people earn money that they are supposedly trying to help. Nobody likes such restrictive practices. There must be conducive environment for conducting financial transactions within the law. But who would drive sense into such people who are hell bent to destroy people’s career, investing and choice!

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        • #5
          I think its not a big deal of as now. Let's see what happens in the near future

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          • #6
            Same here... It's nothing to worry.

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            • #7
              I am not from India, so I am not entirely sure of things. But, I just wanted to ask people one thing who are from India, it really matters even if they banned it? We have example in Forex trading that it’s banned in a way if it doesn’t involve their currency yet many people I know do it with ease without worry. So, do you think it’s really matter much? I don’t think people can be stopped from doing something, at least not online.

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              • #8
                Well, if the country’s Central Bank calls for caution then it is time to be alert! One can’t be careless now and claim innocence later.

                I think the caution sounded by RBI is precautionary and they are still examining factors associated with the legality of using Bitcoin within the law frame of the country. So the rules are quite hazy. Of course, only those using Bitcoin for illegal activities like money laundering, etc. need to be worried

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                • #9
                  I have similar thinking to Tatiana Fedorova. But the scale of operations must be done in lower levels without raising any suspicion! I mean if you are earning say $1,00,000 per year via forex or any other online earning and use banking channel to do conversions and deposit/withdraw, then you might be under radar! This is because Banking and other financial channels have in-built mechanism to red flag transactions above a certain threshold. Hence the need to be careful!

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                  • #10
                    For small transactions it should be not really worrisome but for higher & regular transactions it would be a cause for concern. This is because once the authority’s gets into picture then the scene can get quite ugly.

                    The onus would be then on the users only as the authority(RBI in this case) would say they had warned earlier if something goes wrong or people/exchange scam. So users must also be alert and not use too big transaction especially in one time and that too from unknown sources.

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                    • #11
                      I think we have previously seen such warning as well, so it is something that we need to consider, but at the same time, I believe these things are going to continue. So we need to think lesser and make sure we focus on playing things in peaceful mind. We often see newbies panic and make silly mistakes especially for ones who are trading with this. It is vital to be calm and relaxed.

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                      • #12
                        Yes authorities have been warning about different assets and about Bitcoin too. This should make investors a bit more cautious and not do anything silly as it is imperative on them to come with a good plan and risk management.

                        If one is not involved in any illegal activity by using Bitcoin then there is nothing to be concerned of. But if otherwise, then the law might catch with them sooner or later! It is always better to follow all the rules of the country.

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                        • #13
                          This is kind of old news and there are recent reports of Indian government forming a committee to look into Bitcoin and other virtual currencies. So one might expect some positive development. Of course, even if it is rejected or Bitcoin banned, people would still use it in illegal ways as there are various means to do that. Only thing they should not be caught and be careful enough! But if it illegal in a country why take all the trouble?

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                          • #14
                            When the warning comes from the top then it is time to run for the hills as the Authorities might catch with you sooner than later if you are using Bitcoin for illegal activities like money laundering, terrorism funding, human trafficking, drug running, etc.

                            On the other hand, if you are here to earn via Bitcoin by buying low and selling high and/or as a payment tool for goods/services which are legal then there might not be any concern! So needs to be careful on that front!

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                            • #15
                              I think this is old news as I hear a recent committee has cleared the way for Bitcoin to be declared as a legal asset. But I am not pretty sure about that. So Indian users please get it confirmed before dealing in Bitcoins or regret later more so if you deal in bigger amounts regularly! BTW, people would continue to use Bitcoin whether it is legal or not in their country as they might find it useful for their needs.

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