Is It Legal To Play Online Poker In India?

Information technology is seen as an enabler by business community of India. As the use of IT in India is increasing, entrepreneurs have started exploring the cyberspace to establish new ventures like e-commerce, Bitcoins exchanges, online poker websites, etc. All this is happening without a clear cut legal framework as we have no dedicated online gaming and gambling laws and regulations in India and this field is still evolving. Although the traditional gambling in India is governed by colonial laws yet we have no dedicated laws for online gambling in India.

Similarly, there are no dedicated laws and regulations for online poker in India as on date. Further, there are no specific judicial decisions pertaining to playing of online poker in India. Both players of pokers and websites hosting the poker games are in a fix to decide whether to play and host the poker game on a website in India. Till date the position of playing online poker in India is a grey area.

Since the area is developing there are very few cyber law firms and cyber lawyers in India who can provide effective legal support and services in this regard. The Information Technology Act, 2000 is the sole cyber law of India and very few law firms and lawyers are practicing in this novel field. Even among those practicing the cyber law field, there are only handful of lawyers who can take up the matter pertaining to online gaming and gambling in India.

Online gambling laws in India are different that online gaming laws of India. Further, online gambling and gaming laws and regulations in India and conflict principles must also be kept in mind by online poker websites of India.

According to Perry4Law, the exclusive techno legal ICT law firm of India, to start with, any online poker website of India that wishes to engage in legal business must comply with Indian laws like Indian Penal Code, 1860, Code of Criminal Procedure, 1973, Indian Information Technology Act, 2000, the Public Gambling Act, 1867, Foreign Exchange Management Act (FEMA) 1999, etc

Taxation, money laundering and payment gateways issues must also be taken care of by those proposing to open online poker websites in India. Further, various guidelines and rules issued from time to time must also be complied with by online poker websites of India opines Perry4Law.

The crux of the legal position seems to be that if an online poker website is following the laws of India while operating in India, it is legal to play online poker in India. However, if the laws of India are breached during such online presence both the cyber law of India and other applicable state laws may be attracted.

Online gaming industry is booming in India and it is going to be a multi billion dollar industry in India.  In order to capture this market the online poker entrepreneurs must comply with all the applicable laws of India and consult some good techno legal firm before launching their websites.

Bitcoins Legal Issues Vexing Bitcoin Community Of India

 

E-commerce is a very lucrative field. But it is also full of legal compliances that must be strictly adhered to. Most of the e-commerce entrepreneurs in India fail to comply with e-commerce laws and regulations of India. Now Bitcoins legal issues are vexing Bitcoin community of India. In fact, Indian Laxmicoin has sought clarifications from regulatory authorities before its launch.  

Example of e-commerce entrepreneurs failing to comply with Indian laws pertain to online pharmacies, online gambling, online adult accessories, online stores, etc. The latest to add to this list is the dealings of Bitcoins in India. Naturally, Bitcoins legal issues are increasing in India.

One of the most prominent questions that is making rounds in the Indian e-commerce entrepreneurs is are Bitcoins legal in India? This legal uncertainty among Bitcoin community of India is increasing day by day. More and more legal violations are being reported these days. In the past there have been many media reports of the usage of Bitcoins for illicit and illegal activities in several jurisdictions. Now it has been reported that some Indian tea traders violated Indian laws by engaging in illegal Bitcoin transactions.

Various operators are expecting clear regulatory clarifications that virtual currencies are not illegal per se but according to Perry4Law, the leading techno legal ICT law firm of Asia, Bitcoins website owners and entrepreneurs must comply with Indian laws to stay legal. The virtual currencies are saddled with number of significant financial, cyber security and legal risks at the moment. The research paper titled Cyber Law Due Diligence in India and E-Commerce Businesses (PDF) issued by Perry4Law has aptly described the cyber law due diligence requirements that Bitcoin websites in India are required to follow.

Bitcoins websites are already under regulatory scanner of Enforcement Directorate (ED). In fact, Seven Digital Cash LLP is already facing legal risks for dealing in Bitcoins in India. More details would be available only once ED completes its investigation in this regard. ED believes that Bitcoins money can be used for hawala transactions and funding terror operations and this seems to be a legally plausible explanation as well.

Meanwhile the Bitcoin community of India is planning to analyse legal framework surrounding Bitcoins in India. From their initial encounter with the Indian laws they have realised that Bitcoins business cannot be done in India without regulatory risks. They have also sounded an alarm of caution that Bitcoin community of India must comply with Indian laws before dealing in Bitcoins in India.

However, a bare perusal of the websites of various Bitcoin providers in India shows that they have clearly failed to consider Indian laws. For instance, The Information Technology Act 2000, which is the cyber law of India, prescribes cyber law due diligence and the Internet intermediary liability in India. These cyber laws due diligence and Internet Intermediary requirements squarely apply to websites dealing, selling and transferring Bitcoins in India. But these websites are not following the same and these lacunas are allowing ED and other regulatory authorities of India to corner Bitcoin websites and their owners.

It would be a prudent act on the part of Bitcoin community to consider all the applicable laws of India and duly follow the same while dealing in Bitcoins. Needless to say the same must be done before launching any new Bitcoin websites in India and the existing one must also fall in line as soon as possible.

Indian Laxmicoin Seeks Clarifications From Regulatory Authorities Before Its Launch

So far Bitcoins legal issues were vexing Bitcoin community of India. Now the Indian version of Bitcoins named Laxmicoin has felt the pressure of legal uncertainty surrounding virtual currencies like Bitcoin and Laxmicoin. This is more so after the Reserve Bank of India (RBI) declared that Bitcoins are vulnerable to various sorts of risks including legal risks.

According to Hindu, Laxmicoin has adopted a cautious approach and has decided to with till legal uncertainties are over. However, this may take considerable time keeping in mind the slow pace at which regulatory issues are resolved by India.

Bitcoins websites in India are already under regulatory scanner of Enforcement Directorate (ED). ED believes that Bitcoins money can be used for hawala transactions and funding terror operations and this seems to be a legally plausible explanation as well. Even RBI has expressly said that dealings in Bitcoins in India subject to legal risks.

Many Bitcoins entrepreneurs have suspended their operations till Indian regulatory authorities come up with a clear cut regulatory framework. Those who are functioning are working with the clear understanding that they can be prosecuted by Indian regulatory authorities wherever they are found to be breaching Indian laws. Laxmicoin has preferred the former approach that is more conservative in nature. 

According to posts on Laxmicoin’s Twitter page, its launch has been delayed due to “regulatory clarifications” and they hope to have clear guidelines from government soon. They further said that they have written to authorities and are waiting for their replies to avoid any “problems“.

Various operators are expecting clear regulatory clarifications that virtual currencies are not illegal per se but according to Perry4Law, the leading techno legal ICT law firm of Asia, Bitcoins website owners and entrepreneurs must comply with Indian laws to stay legal. The virtual currencies are saddled with number of significant financial, cyber security and legal risks at the moment. The research paper titled Cyber Law Due Diligence in India and E-Commerce Businesses (PDF) issued by Perry4Law has aptly described the cyber law due diligence requirements that Bitcoin websites in India are required to follow.

There have been regular reports of cyber criminals hacking and stealing virtual currencies across the world. More and more legal violations are being reported these days. In the past there have been many media reports of the usage of Bitcoins for illicit and illegal activities in several jurisdictions. Now it has been reported that some Indian tea traders violated Indian laws by engaging in illegal Bitcoin transactions.

Further, different virtual currencies continue to pop up almost every day, exposing users to unintended risks and losses arising out of scams perpetrated by cyber criminals, cyber security experts say. It is high time for Bitcoins entrepreneurs to comply with Indian laws before indulging in Bitcoins dealings in nay manner whatsoever.

Bitcoins Legal Violations Continues In India As Tea Traders Violate Indian Laws

Bitcoin dealers and traders in India have taken Indian laws for granted for too long. Initially they presumed that there is no law that prohibits the unregulated dealing in Bitcoins in India. However, the moment Reserve Bank of India (RBI) declared that use of Bitcoins in India is subject to Indian laws and is legally risky, most of the Bitcoin websites closed their shops.

RBI has just reiterated what has been suggested by Perry4Law, the leading techno legal law firm of Asia. According to Perry4Law, Bitcoins website owners and entrepreneurs must comply with Indian laws to stay legal. Even RBI has clearly mentioned that there have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities in several jurisdictions.

Soon after the cautious advisory, the enforcement directorate (ED) swung into action and raided two Bitcoins websites and their offices. ED believes that Bitcoins money can be used for hawala transactions and funding terror operations and this seems to be a legally plausible explanation as well.

Now it has been reported by Hindu that a small section of tea traders and exporters have bee using Bitcoins to bypass Indian laws and to deprive Indian exchequer of the revenue it is legally entitled. The price this kind of shipment fetches is fantastic, around $11 per 15 gm of tea. Any consignment of up to 4 kg, if sent out of India by an international courier, will attract no mandatory surveillance or monitoring.

The attention of the Commerce Ministry and Tea Board has also been drawn to this section of small and specialised tea growers and exporters who have been opting for US-based online trading platforms to use digital currency Bitcoin as a means of expanding their international business. This way they are bypassing the normal banking channels and they cannot be regulated and scrutinised by Indian authorities.

The Bitcoin instrument helps the exporter and the importer of tea clinch a deal directly without any middleman, thus cutting out the middleman’s fees. The transaction can be completed within a few minutes and weekly holidays, bank holidays or strikes do not stand in the way of concluding the deal. Also, payments can be received from anywhere in the world without any bank transfer or the use of debit or credit cards.

In the winter session, several Members of Parliament raised questions about the use of the Bitcoin instrument by a section of small and specialised tea growers to sell their produce abroad. They wanted to know if the Government was aware of such practices, and if so, was it contemplating any action.

However, the stand of Indian government in this regard is still not clear. This has not only given rise to legal uncertainty but has also encouraged illegal and unauthorised use of Bitcoins in India. The Information Technology Act 2000, which is the cyber law of India, prescribes cyber law due diligence and the Internet intermediary liability in India. These cyber laws due diligence and Internet Intermediary requirements squarely apply to websites dealing, selling and transferring Bitcoins in India. Further, money laundering, foreign exchange and security dealing laws also apply to Bitcoins dealings and trading in India.

The cyber law trends of India 2013 by ICT law firm Perry4Law has cautioned (PDF) that Bitcoins websites may further face legal actions if they fail to comply with Indian laws in the year 2014. Taking preventive measures by the Bitcoin community of India would be a sane choice as the present regulatory requirements of India are not followed by the Indian Bitcoin community. Let us hope that the Bitcoins saga in India would not end up in the prosecution of Bitcoins entrepreneurs in India.