For weeks, India has halted bitcoin operations due to regulations in which virtual currency should be conducted under. Finally, bitcoin operators have resumed business for existing and new clients.
The suspension of operations was due to a warning issued by the Reserve Bank. India was warned of that dealing with such virtual currency would cause risks in cyber security and money laundering, which are not backed by any assets or monetary authorities.
The Enforcement Directorate have also initiated action against some bitcoin operators, resulting in many entities suspending their operations.
Many Indian bitcoin operators and corporations have revamped their lobbying for clearer regulations toward virtual currencies. For now, operators such as Unocion have continued conducting business on a ‘trial basis’, while other entities have begun using bitcoins. Unicoin’s website states:
“Unocoin is running on trial basis. Strict buying and selling limits are applied on all accounts.”
Unocoin will be collecting 0.5% of trade value through customers on every bitcoin purchase and sale transaction. They will also contribute 1% of trade value to the Bitcoins Alliance India (BAI), a new group formed by Indian bitcoin operators to spread awareness on bitcoins place within the sub-continent.
One of India’s newer bitcoin players, BitQuick.In has entered the scene saying it will help connect bitcoin users directly to their own banks. They are charging a 1% fee for purchases of bitcoin, while no charge is placed on those selling these currencies.
Some outlets such as Buysellbitco.In and Inrbtc.com remain suspended, waiting for a clearer framework to simplify bitcoin regulations. However, experts feel that markets demand for trading in bitcoins and other digital currencies in circulation has not fallen as much as they’d originally thought.
There are an estimated 30,000 bitcoin holders in the country. Because of the negative impressions linked to bitcoin in India, many enthusiasts are looking to offload them. Some are shutting down their website portals and are considering running new services with new names.
Rbitco.In portal is being discontinued starting January 31, 2014, however it’s promoters “will be continuing the service with a fresh data and a new site.
With India having the world’s second largest population, bitcoin can become a major payment option for a huge portion of the world.
Bitcoin in India Image