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India’s Ambiguous Stance on Bitcoin Transaction

India's Ambiguous Stance on Bitcoin Transaction

Although the Reserve Bank of India recently issued a warning against transacting using Bitcoin, yesterday they stated that they won’t be regulating Bitcoin transactions.  KC Chakrabarty, Deputy Governer of RBI said “Regulation comes only when people are doing certain business and we come to understand that something wrong is happening. First of all we don’t understand this subject.”  He continued that “at present what we are saying is neither we regulate them nor we support them”  This is a surprising statement considering that it comes just days after Enforcement Directorate officials raided the offices of two Bitcoin exchanges in Ahmadabad, rBitco.in and buysellbitco.in. The owners of the two exchanges are being charged with violating the Foriegn Exchange Management Act, and officials are analyzing their transaction data for illicit activity.  For now, India’s regulatory stance towards bitcoin transaction remains inconsistent and unclear.

Read more:
http://timesofindia.indiatimes.com/business/india-business/No-move-to-regulate-Bitcoins-RBI/articleshow/28071044.cms
http://articles.economictimes.indiatimes.com/2013-12-27/news/45626789_1_one-bitcoin-bitcoin-transactions-peer-to-peer-payment-network

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Reserve Bank of India Warns About the Risks of Cryptocurrency as Indian Businesses Begins Accepting it

Reserve Bank of India Warns About the Risks of Cryptocurrency as Indian Businesses Begins Accepting it

Reserve Bank of India stated that cryptocurrency is risky to transact in because “there is no established framework for recourse to customer problems/disputes/chargeback, etc,” continuing that “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”. At the same time, businesses in India are begining to accept cryptocurrencies such as Bitcoin because of the percieved benefits offered by a currency secured by math and physics rather then by human promises. Tarun Thandi, owner of Kolonial, the first restaurant in India to accept payment in Bitcoin said, “Right now, people are a bit sceptical about bitcoins, but it’s going to become big. I am testing the waters”

Read more at:
http://www.financialexpress.com/news/virtual-alert-rbi-warns-users-against-bitcoin-risks/1211322
http://economictimes.indiatimes.com/articleshow/27871965.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst