I buy and sell bitcoin with my Hong Kong company account. I want to buy and sell bitcoin in India- I require to be able to open a local bank account. What company structure can be used Is there capital restrictions for a company as I will need to purchase more bitcoins abroad from the funds received at the local Indian bank.
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RBI, on December 24, 2013, issued a press release on virtual currencies like bitcons stating that creation, trade and usage of virtual currencies as a medium for payment is not authorized by any central bank or monetary authority
2) refrain from buying and selling bitcons in india at present
But can they be bought and sold as a commodity?
1) ” Black's Law Dictionary 342 (4th ed. 1968) defines commodity: a movable article of value that can be bought or sold
2) . A bitcoin is not movable property, so arguably it's not a commodity.
3) United States Commodities Futures Trading Commission (CFTC) has asserted that it is a commodity
Bitcoin owners in the country had few avenues for using the currency. Since the crypto-currency is technology driven, sellers need to have platforms to accept it. This is where things have changed in recent times. Unocoin, an Indian bitcoin exchange, has launched a 'merchant gateway' which enables business entities to accept bitcoins.
Similarly in the recent times many such organisations have come up with such gateways for selling bitcoins.
When a merchant offers the bitcoin option, he reaps the benefits of lower transaction fees, no chargebacks, fraud prevention and quick payment. Merchants can instantly convert the bitcoins received into Indian rupees in their bank account,"
The interest is not limited to e-commerce sites. Dharwad International School in Karnataka introduced bitcoins as an online payment facility for school fee this academic year.
However, the legality of bitcoins has often been a topic of debate. Bitcoins are legal in the country. "The dialogue around their illegality among potential investors or merchants is simply a fear of the unknown. The only word of caution — people should be wary of accepting bitcoins from outside India as exchange control regulations are applicable.
But can they be bought and sold as a commodity?
Since there is no specific regulation or rules in this regard or guidelines by RBI, it can be carried out in the manner as how it is being operated following FEMA guidelines if foreign currency is involved.
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