RBI Warned To Suspend Bitcoin Exchange In India


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 InrbtcUnicoin.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.
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About Priyanshu

A Social Media and Cyber Security Expert. Love to write about latest technology and Gadgets.