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  • I'm reading about central bank's warning against virtual currencies like BitCoin. I couldn't find any mention about BitCoins being 'illegal in India'. My question is more generic - is virtual currency illegal in India? That is, if I buy 'credit points' for an online service in India using real money and then I redeem these credit points against the services I use on the site - am I doing anything illegal?

    My understanding of virtual currency indicates that it's similar to buying a 'gift card' on Amazon.com for yourself and then using that gift-card for various purchases. This is allowed; but I just want to be 100% sure.

    Anyone?
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  • lovejeet

    Member • Dec 24, 2013

    I don't think it should be illegal. I have heard about airtel money, a concept which involved virtual transfer of money through the cell phones. So if Airtel can provide that service, i guess it wl be illegal.
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  • Sanyam Khurana

    Member • Dec 25, 2013

    Gift cards cannot be considered illegal (Damn Sure)
    You are just buying stuff, exchanging real money with gift cards as virtual currency.

    But Bitcoins is something which I have doubt with, people join the pool, mine bitcoins, they are actually what can be (not must) illegal.
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  • Anand Tamariya

    Member • Dec 25, 2013

    Bitcoin is not illegal - neither is its mining. RBI issued a warning just to ensure people who don't understand it don't lose money in it especially considering wide fluctuations it has seen in its valuation.
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  • sauhard

    Member • Dec 26, 2013

    Nah virtual currencies such as Bitcoin, payza pioneer and especially paypal are not illegal in india. However there are some restrictions of some currencies in india such as paypal that online buying of goods is not possible from paypal in india nowon. But there are some massive advantages of paypal.

    I do work in online currencies and stuffs so if you need any help pm me
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  • Anand Tamariya

    Member • Dec 26, 2013

    sauhard
    But there are some massive advantages of paypal.

    I do work in online currencies and stuffs so if you need any help pm me
    I'd like to know the advantages of paypal.
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  • Kaustubh Katdare

    Administrator • Dec 26, 2013

    @#-Link-Snipped-# - thank you for your response. My specific question is: There's a flash banner maker website that lets you create animated flash banners online. In order to use these banners; the website asks you to purchase 'virtual points'. For example, for $19.99; they will give you about 50 'virtual points'. These virtual points can be redeemed across their partner websites at any time you want. It's like 'topping up' your account and then consuming your digital points to make various 'purchases' on their partner websites. The system is beautifully designed.

    I was concerned whether buying virtual points would be illegal in India. I think it's not; but just making sure that it's a fact.
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  • Sanyam Khurana

    Member • Dec 27, 2013

    sauhard
    Nah virtual currencies such as Bitcoin, payza pioneer and especially paypal are not illegal in india. However there are some restrictions of some currencies in india such as paypal that online buying of goods is not possible from paypal in india nowon. But there are some massive advantages of paypal.

    I do work in online currencies and stuffs so if you need any help pm me
    BITCOIN is illegal now in India.

    RBI banned trading of Bitcoins.

    Now they can put you in jail.
    Final jurisdiction has come.
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  • sauhard

    Member • Jan 15, 2014

    Kaustubh Katdare
    @#-Link-Snipped-# - thank you for your response. My specific question is: There's a flash banner maker website that lets you create animated flash banners online. In order to use these banners; the website asks you to purchase 'virtual points'. For example, for $19.99; they will give you about 50 'virtual points'. These virtual points can be redeemed across their partner websites at any time you want. It's like 'topping up' your account and then consuming your digital points to make various 'purchases' on their partner websites. The system is beautifully designed.

    I was concerned whether buying virtual points would be illegal in India. I think it's not; but just making sure that it's a fact.
    Sorry bit too late in replying. But yeah that virtual currency is not illegal.
    Consider freecharge.in as an exmaple. They also offer virtual currency points known as -"CREDITS". Also take the example of a major online shop- jabong.com also stores currency in virtual points.
    Ebay also offers vrtual currency which can redeemed on various sites. So i am pretty sure it's not illegal.
    THe illegal part comes when you either store a large amount of money online outside india in various virtual currencies (Well's that's new trend now 😛)
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  • sauhard

    Member • Jan 15, 2014

    Sanyam Khurana
    BITCOIN is illegal now in India.

    RBI banned trading of Bitcoins.

    Now they can put you in jail.
    Final jurisdiction has come.
    Still kindda confused but check this:
    <a href="https://www.thehindu.com/business/Economy/bitcoins-per-se-are-not-illegal-in-india-nishith-desai/article5538900.ece" target="_blank" rel="nofollow noopener noreferrer">Bitcoins per se are not illegal in India: Nishith Desai - The Hindu</a>
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  • Kaustubh Katdare

    Administrator • Jan 15, 2014

    I think it will never be illegal. The netbanking thing is all virtual and no 'real' money is transferred between the banks.
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  • sauhard

    Member • Jan 15, 2014

    Kaustubh Katdare
    I think it will never be illegal. The netbanking thing is all virtual and no 'real' money is transferred between the banks.
    yup But there is still a limit on netbanking transactions 😔😡
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  • ISHAN TOPRE

    Member • Jan 16, 2014

    Kaustubh Katdare
    I think it will never be illegal. The netbanking thing is all virtual and no 'real' money is transferred between the banks.
    Buying a bitcoin is risky. You buy a bitcoin from say INR 10000 and then lose interest which you would have otherwise earned from bank term deposit.

    Also, as there is no regulation, you cannot predict what will become of the value of Bitcoin. Today it is highest rated so called currency. Tomorrow it may be zero.

    The same is not a case with rupee, dollar, yen, yuan etc. These are tradable commodities and their appreciation and depreciation has a logic unlike Bitcoin.

    However in my opinion, getting a bitcoin is not illegal. You correctly said as it is synonymous to buying a gift card. The Reserve Bank of India has only issued a warning to trade carefully in the unregulated money market. The matter is under review. You may like to read this- #-Link-Snipped-#

    P.S: Do not refer to RBI as Central bank, it may be confused with central bank of India (In your founding post).
    Central bank of India is only a consumer bank. Reserve bank of India is a regulatory bank.
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