Bitcoin is a digital currency that is making rounds these days. However, with its growing popularity, Bitcoins frauds and crimes are also increasing world over. Cyber criminals and crackers have started exploiting software and the platforms using Bitcoins. In one such incidence Sheep Marketplace, the descendant of Silk Road, has been compromised and 5,400 Bitcoins (worth about $5.6 million) have been stolen.
Previously E-Sports Entertainment LLC (ESEA) entered into a consent judgment for creating ESEA Botnet to facilitate mining of Bitcoins at the expense of user’s computing resources.
Bitcoins have been banned in Thailand and may be illegal in India as well unless laws are followed by those engaged in using Bitcoins in India. India cannot remain indifferent towards these developments. Many of these negative developments are actually happening in India. Illegal use of Bitcoins is increasing in India and RBI and Indian government are indifferent in this regard. As a result Bitcoins are used in India for multiple purposes including conducting medical and surgical abortions in India.
Many Bitcoins enthusiastics wonder whether use and dealing in Bitcoins legal or illegal in India? According to techno legal experts there is no straight forward answer to this question but the legality of Bitcoin in India is in doubts.
Those companies and websites that are accepting Bitcoins in exchange of goods and services are doing it in an illegal manner and they can be prosecuted and punished. It is always better to observe cyber law due diligence before engaging with Bitcoins in India in any manner whatsoever.