Indian Bitcoiner Seeks Clarification From RBI On Its Legality

MUMBAI (Scrap Monster) : An Indian Bitcoiner was reported to file a clarification on behalf of a law consultant to the Reserve Bank of India (RBI) regarding the legal status of Bitcoin, whether the Govt. accepts or bans the virtual currency. The legal status of Bitcoin in India is hanging on the verge after RBI issued warning on December 24,^, 2013, slamming the trade and use of Bitcoins citing various security issues. Mr. Venugopal Badaravada on behalf of a law consultant Mr. VijayaShankar has pressed RBI to come with a clarification regarding the use of Bitcoins in India.

Reacting to the petition, Vijayashankar said that the RBI needs to clarify whether they accept or oppose Bitcoins as the question of its legality is still unclear to the public. The petition says that in the December advisory, RBI had stated that they are examining the issues related with the usage and trading of virtual currencies like Bitcoins under the legal and regulatory framework of the country such as the Foreign Exchange and Payment Systems laws and regulation. RBI had then assured that they will soon come out with an answer.

VijayaShankar had petitioned a clarification on January 7^th this month and has not received any clarification until now. After the deadline for clarification ended on February 7^th, Vijayashankar says that he does not expect them to respond to the situation. He adds that he will be approaching higher level of judiciary as he has lost hope on obtaining RBI’s clarification. He hopes that the court may provide time for RBI to come out with a response.

Agitated on the current unclear legitimacy of Bitcoins and such virtual currencies in India, the law consultant says that only a clarification would enable the industry to go ahead and remaining silent will not help. Following the RBI warning, several Bitcoin Exchanges in India were suspended. However, according to Exchange firms, they are receiving response from clients regarding the use of Bitcoin. But as long as RBI does not announce a decision, they can’t run their business in the country.