The Bitcoin boom is gradually shifting east as traders of the e-currency appreciate the sharp price movements. However, India, Asia’s third largest economy, is believed to be the next dstination to formally give Bitcoin trading the red card.
The RBI has had a turbulent year with the rupee forcing the central banking authority to make rapid changes in monetary and interest policy, furthermore, the central bank issued ‘another’ warning against participants transacting in margin FX. Professionals in the financial markets believe that an RBI statement on the status of Bitcoins is imminent.
Asad Hussain, a Mumbai-based training consultant, commented to Forex Magnates: “FX came and RBI intervened; now Bitcoins came and RBI will intercede, in my opinion. However, they won’t keep a look out for five years like they did with the Forex trading. Mr Rajan will follow the Chinese.”
Bitcoins are gradually gaining traction in the world’s second most populous nation, a country known for its IT skills and capabilities, India is believed to be the next boiling pot waiting to explode as the digital currency made international news after crossing the formidable $1,000 mark. However, without proper rules and regulations in place, the users of Bitcoins could face the dilemmas before they bear fruit.
Amit Rathi, a Bitcoin user, explains why he thinks Indian authorities will intervene, he said: “You see India is a nation where people trust individuals not an authority like in Europe, there is no organisation that is initiating any structure, therefore the ‘aam aadmi’ (common person) will be subject to fraud and malpractice.”
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RBI’s strict stance on the FX markets has been driven by ill practices by persons operating in the country, the Pazee scam is an example of how a Madoff-type scheme caused havoc among private investors.
Bangalore, India’s IT hub, will be home to the first Global Bitcoin Conference in India on the 14th and 15th of December, an interesting move, however what is more interesting is how the regulators view the two-day event.
Promising news for Bitcoin fans in India as a hairdresser in Chandigarh (a city in Punjab) recently joined the growing number of retail outlets accepting Bitcoins.
Buysellbitco.in offers Bitcoins in Indian rupees, and according to its website only accepts clients who provide suitable identification documents e.g. a PAN card. A PAN card is an official ID document issued by the government.
1 Bitcoin is trading at INR 66,721.