Tuesday, December 24, 2013

Bitcoin Users In India Vulnerable To Legal Actions: RBI

Reserve Bank of India (RBI) has reiterated what was explicit and was expected. Through a public advisory RBI declared that use of Bitcoins in India is legally risky. The advisory of RBI is in conformity with the views expressed by Perry4Law so far.

By taking this stand RBI has also clarified that use of Bitcoins in India must be in compliance with Indian laws. Otherwise, civil and criminal prosecutions can be initiated against the users of Bitcoins in India.

The legality of Bitcoins in India was never guaranteed. However, in order to jump upon the wagon band of Bitcoins, many Bitcoins entrepreneurs and stakeholders are openly violating the laws of India, especially the cyber law of India.

Techno legal experts have been maintaining that it is legally wrong to assume that dealings in Bitcoins in India if strictly legal as individuals and companies have to take care of the cyber law due diligence and Internet intermediary rules compliances. For instance, a platform selling and purchasing or trading in Bitcoins must not only comply with the provisions of Information Technology Act, 2000 but also with laws applicable to online trading and income tax.

With the present advisory, the websites and individuals dealing in Bitcoins in any manner whatsoever must comply with the techno legal requirements of Indian laws. Otherwise, they may find themselves in big trouble.