ED Raided Two Bitcoin Trading Exchanges In India

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Enforcement Directorate officials in Ahmedabad invaded two companies that were running Bitcoin transactions in India, after the RBI handed out a admonitory message regarding the use of one of the most popular virtual currency in the world.

Enforcement Directorate officials told ET that on Thursday they raided the offices of rBitco.in and buysellbitco.in After FBI conducted a raid in October on a Trading company, this is globally the second and India’s first bitcoin invasion.

Bitcoin Raid In India

Bitcoin is a virtual currency through peer-to-peer payment network and based on an open source protocol, which makes use of a public transaction log. Bitcoin, first burst into the scene in 2009. It is an unregulated virtual money, deposited by users in the form of private key which permits transaction. At the start, the value of one Bitcoin was $2 in 2011 and it climbed up to $1100 per Bitcoin at one point of time. In Indian currency the current buy rate is Rs 46,600 per Bitcoin and sell rate is Rs 44731 per Bitcoin.

This invasion is assisted by an Ahmedabad-based company and a forensic expert in IT and software, ECS Corporation. The Corporation aids the info and then ED analyze the data collected from these two bitcoin sites.

Under FEMA Act the owners of the both the bitcoin trading firm would be charged initially. However, after further investigation of the collected data, if any havala transaction or criminal nature transaction is noticed then they would be retained under the proper Act.

On Tuesday, A caution was handed out by the Reserve Bank of India (RBI) against use of bitcons transaction. According to the sources, these companies were running a trading platform for Bitcoins. As it involves transfer of money within and the outside the country, they at least need requisite permission or authorization from Reserve Bank of India (RBI).

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