1.Position in India Bitcoin?

Position in India 12 I. What is Bitcoin? 12 II. FEMA, RBI and Coinage Act 12 III. Currency 13 IV. Legal Tender 13 V. Currency Notes 13 VI. Virtual currency 13 VII. Bitcoin as a Good and a Commodity 14 VIII.Bitcoin as Payment System or Pre-Paid Instrument 14 IX. Applicability of SCRA 15 X. Bitcoin – Contracts and enforceability 15 6. Regulatory concerns regarding Bitcoin 17 I. KYC Norms – Applicability to Bitcoin 17 II. Cross border transfer of Bitcoin 18 III. Taxation of Bitcoin 18 IV. Income Tax 19 V. Currency 19 VI. Central Sales Tax / Value Added Tax 20 VII. Service Tax 21 7. Intellectual Property Issues 22 I. Trademark 22 II. Patent 22 III. Copyright 22 8. Security Issues 24 I. Hacking 24 II. Hacking with Criminal Intention 24 III. Identity Theft 25 IV. Cyber Terrorism 25 9. Privacy and Data Protection 26 © Nishith Desai Associates 2015 Provided upon request only 10. Risks related to Bitcoin 27 I. Cyber Attacks and Hacking: “Virtual Bank Robbery” 27 II. Price Fluctuation and Inflation 27 III. Fraud 27 IV. Uncertainties in the Government Policies 27 11. Vulnerabilities in Bitcoin transactions 28 I. Money Laundering 28 II. Drug Trafficking 28 III Blackmailing 28 IV. Terrorist Financing 28 12. Setting up Bitcoin Related Business in India 30 13. Regulatory Consideration 31 14. E-Curbing Vulnerabilities: Know your Customer (KYC), Customer due diligence (CCD) and suspicious transaction reporting requirement 32 15. Future of Bitcoin 33 16. Conclusion 34 17. FAQs