LEGAL FORMALITIES TO BUY BITCOINS FROM ABROAD AND SELL IN INDIA

Situation : If I buy Bitcoins from a foreign country & sell it here in India (for arbitrage purpose), it will be like importing foreign goods & selling it in your country. So, what legal formalities like obtaining a specific license, filling forms etc will I have to do in order to do avoid any legal issues? Also kindly throw some light on taxation.
Related Topics : Corporate Law
Lawyers answer this question

Advocate Priyanka Chopade

Nagpur, Nagpur
For More Details Contact On +91 7769012300.
A:

Bitcoin is called as digital currency or virtual currency. Now if you see the traditional

Even some day back, RBI issued an advisory to public not buy and sell virtual currency and RBI not permit such transactions.

The term Currency is define in section 2(h) of the Foreign Exchange Management Act,1999. But when we see the definition of Currency Bitcon is not really similar to any of the instruments in definition, as none is of Digital or virtual in nature and that’s why Bitcoin are in Gray area today across world.

Even some day back, RBI issued an advisory to public not buy and sell virtual currency and RBI not permit such transactions.

Now if you want to know about securities. This term Security is defined in Section 2(h) of The Security Contract (Regulation ) Act, 1955 and unfuturity Bitcoin does not come with in any of part of the the definition of Securities.

Finally Bitcoin cannot be classified as regular financial instruments Such as “Currency”, “Security”, or “ Negotiable instruments” as only this instruments defined under India Law.  

Bitcoin are essentially line of code which create the system of transfer of Bitcoin currency from one account to another, as General Clauses Act, 1897 Bitcon is fulfill and consider as moveable property under Indian Law. The Bitcoin community has formed an association called Bitcoin Alliance India (BAI) and second, websites such as Madovercoins.com and Bitquick.in have started operations too.
However BAI wants to work closely with the government to create a proper legal framework for the virtual currency in India.
Apart from this all there Foreign Exchange Management (Current Account Transactions) Rules, 2000. Need to be considered.  

Currently there are very limited legal papers available and more thorough examination of the legality of Bitcoins.

321 user found this answer helpful

Disclaimer : This answer is based on information given by you hence, It is just opinion of Lawyer. For specific answer you have to give details and facts and choose the Lawyer of your choice.

Lawyers: To answer this question, please Sign In to your account or wait for admin approval.

Most Viewed Lawyers