Recently the Reserve Bank of India (RBI) cautioned
users of virtual currencies against various risks. These
include legal
risks as well. RBI has not said anything new and it has
just reiterated what many legal
experts have been saying for long.
Further, although many Bitcoins websites in India
have been either suspended or closed down yet the civil and criminal
liabilities have already accrued. This means that all these Bitcoins
websites owners can be prosecuted for violation of Indian laws even
if the websites have been shut down.
In fact the enforcement directorate has already
conducted
searches against Seven Digital Cash LLP and its Bitcoin
website – www.buysellbitco.in. This means Seven Digital Cash LLP is
now
facing legal risks for dealing in Bitcoins in India. Not
only Seven Digital Cash LLP but all other Bitcoins websites are
equally under a very probable legal risk to get their accounts and
business scrutinised by law enforcement agencies of India.
This situation has arisen because of the legal
mistakes committed b y these websites. These Bitcoin websites must
have followed the cyber
law due diligence requirements and Internet
intermediary guidelines. However, they have failed to do
so and now they are facing a situation where serious criminal charged
can be leveled against them.
