Bitcoin is now illegal in India. After
a flat-out ban in Thailand and restrictions on banks in China, now
several Indian Bitcoin exchanges have suspended their services after Reserve Bank Of India warning.
According to DNA report, "the
first raid in India was undertaken in Ahmedabad by Enforcement
Directorate (ED) on an entity that provide a platform to trade in this
illegal but virtual currency.
On 26th DecThursday, ED raided
the premises of the Mahim Gupta in Bopal area of the city who provides
trading platform through his website -- buysellbit.co.in. During the
preliminary investigation, the ED found that it is in clear violation of
the Foreign Exchange Management Act (FEMA) rules of the country as
central bank does not provide permission to indulge in such
transactions."
The Suspended website now reads, “Post
the RBI circular, we are suspending buy and sell operations until we
can outline a clearer framework with which to work. This is being done
to protect the interest of our customers and in no way is a reflection
of Bitcoin's true potential or price.”
Other Indian Bitcoin currency exchanges like Inrbtc, Unicoin.com have also suspended their operations and similar warnings have been placed on their websites.
Bitcoins, and other virtual
currencies, have been gaining currency quickly in India. Such instant
action again virtual currencies look like a precautionary measure, one
that will shield the service from potentially forthcoming legal
restrictions on digital currency businesses.
RBI already have given report on Bitcoin see the Press release of RBI cautions users of Virtual Currencies against Risks.