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Bitcoins Websites In India Under Regulatory Scanner

Recently the Reserve Bank of India (RBI) cautioned users of virtual currencies against various risks. These include legal risks as well. RBI has not said anything new and it has just reiterated what many legal experts have been saying for long.

Further, although many Bitcoins websites in India have been either suspended or closed down yet the civil and criminal liabilities have already accrued. This means that all these Bitcoins websites owners can be prosecuted for violation of Indian laws even if the websites have been shut down.

In fact the enforcement directorate has already conducted searches against Seven Digital Cash LLP and its Bitcoin website – www.buysellbitco.in. This means Seven Digital Cash LLP is now facing legal risks for dealing in Bitcoins in India. Not only Seven Digital Cash LLP but all other Bitcoins websites are equally under a very probable legal risk to get their accounts and business scrutinised by law enforcement agencies of India.

This situation has arisen because of the legal mistakes committed b y these websites. These Bitcoin websites must have followed the cyber law due diligence requirements and Internet intermediary guidelines. However, they have failed to do so and now they are facing a situation where serious criminal charged can be leveled against them.

Ram Kaushik:
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