Can we get foreign investment through bitcoin?

Subal_Damudar

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Quote from: Wapinter on March 17, 2017, 03:50:26 PM

But if it is declared as mined in india then it will not be considered foreign exchange.The foreigner would actually buy another crypto for bitcoin.

Sorry for digging old thread. If declared mined in India and stored in Wallet. How will you later prove that this coin was mined in India? As I know, coins do not hold geographical markers about which place they were mined in. Or do they ?

Someone clarify kindly.

legendster

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Quote from: Wapinter on March 22, 2017, 07:39:36 AM

Quote from: legendster on March 22, 2017, 07:10:35 AM

Quote from: Wapinter on March 22, 2017, 06:12:25 AM

Is there any legal expert who can advise me on this?.
Lets keep it simple so it doesn't clash witj any existing law.
Create a crypto,sell it,invest the money gathered from the sell in Agro based business through a registered company.
Buy btc from profit gained, distribute it among crypto holders.

You can bring in as much BTC you want and convert it to INR. RBI is not interested in monitoring cryptos. You will however have to declare the entire amount converted; as an income and have to pay taxes accordingly.
There are various ways you can go about doing this. You could also take care of all the expenses directly through bitcoin, avoiding paying in INR altogether. This will break up your large amount into multiple smaller sections.
However you will needs some serious interpersonal skills for that.

I intend to hire professional for managing all funds and project.
My expertise is limited to Agro based industry which I have closely observed over the years.
Thank you for your insightful opinion.
Will it be fine if I buy btc from profit and distribute it among crypto holders worldwide?

When you say you want to buy BTC from PROFIT I am assuming you mean : you will purchase bitcoins in INDIA from your profits earned HERE.
Off course you can. Just make sure you document everything. Despite RBi not wanting to intervene in Bitcoin they still see it in a gray light. Your profits must be declared. How you use your profits is up to you.

Wapinter

legendary

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Quote from: legendster on March 22, 2017, 07:10:35 AM

Quote from: Wapinter on March 22, 2017, 06:12:25 AM

Is there any legal expert who can advise me on this?.
Lets keep it simple so it doesn't clash witj any existing law.
Create a crypto,sell it,invest the money gathered from the sell in Agro based business through a registered company.
Buy btc from profit gained, distribute it among crypto holders.

You can bring in as much BTC you want and convert it to INR. RBI is not interested in monitoring cryptos. You will however have to declare the entire amount converted; as an income and have to pay taxes accordingly.
There are various ways you can go about doing this. You could also take care of all the expenses directly through bitcoin, avoiding paying in INR altogether. This will break up your large amount into multiple smaller sections.
However you will needs some serious interpersonal skills for that.

I intend to hire professional for managing all funds and project.
My expertise is limited to Agro based industry which I have closely observed over the years.
Thank you for your insightful opinion.
Will it be fine if I buy btc from profit and distribute it among crypto holders worldwide?

legendster

hero member

Activity: 1778

Merit: 764

www.V.systems

Quote from: Wapinter on March 22, 2017, 06:12:25 AM

Is there any legal expert who can advise me on this?.
Lets keep it simple so it doesn't clash witj any existing law.
Create a crypto,sell it,invest the money gathered from the sell in Agro based business through a registered company.
Buy btc from profit gained, distribute it among crypto holders.

You can bring in as much BTC you want and convert it to INR. RBI is not interested in monitoring cryptos. You will however have to declare the entire amount converted; as an income and have to pay taxes accordingly.
There are various ways you can go about doing this. You could also take care of all the expenses directly through bitcoin, avoiding paying in INR altogether. This will break up your large amount into multiple smaller sections.
However you will needs some serious interpersonal skills for that.

Wapinter

legendary

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Merit: 1026

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Is there any legal expert who can advise me on this?.
Lets keep it simple so it doesn't clash witj any existing law.
Create a crypto,sell it,invest the money gathered from the sell in Agro based business through a registered company.
Buy btc from profit gained, distribute it among crypto holders.

Wapinter

legendary

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Merit: 1026

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Quote from: S_D on March 18, 2017, 12:15:19 AM

There was a circular stating FDI in agriculture is prohibited. Some parts of agriculture is excluded, so where the investment is agriculture is made that will impact if its possible.

Further if you fall under 'Prohibited Agriculture (Excluded Category)' of the circular then, bitcoin cannot be classified as a currency so technically you will be receiving some lines of code as an investment from foreign which then will attract taxes when you sell BTC for INR.

I believe something brewing and we shall have guideline on crypto currencies soon, just hold for now. Also please keep us posted if you make a move.
PM me if you don't wanna make it public, I am interested.

Sources:
Annexure A - B(6) https://rbi.org.in/scripts/NotificationUser.aspx?Id=1437&Mode=0
FEMA Section 2(h) http://www.incometaxindia.gov.in/pages/acts/foreign-exchange-management-act.aspx

Thank you for your valuable opinion.Will surly keep you and everyone interested updated.

S_D

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There was a circular stating FDI in agriculture is prohibited. Some parts of agriculture is excluded, so where the investment is agriculture is made that will impact if its possible.

Further if you fall under 'Prohibited Agriculture (Excluded Category)' of the circular then, bitcoin cannot be classified as a currency so technically you will be receiving some lines of code as an investment from foreign which then will attract taxes when you sell BTC for INR.

I believe something is brewing and we shall have guideline on crypto currencies soon, just hold for now. Also please keep us posted if you make a move.
PM me if you don't wanna make it public, I am interested.

Sources:
Annexure A - B(6) https://rbi.org.in/scripts/NotificationUser.aspx?Id=1437&Mode=0
FEMA Section 2(h) http://www.incometaxindia.gov.in/pages/acts/foreign-exchange-management-act.aspx

Wapinter

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Quote from: newIndia on March 17, 2017, 02:08:27 PM

Quote from: Wapinter on March 17, 2017, 07:31:37 AM

I was reading this useful piece of information by Benson Samuel here https://bensonsamuel.com/bitcoin-3/reserve-bank-of-india-regulations-on-bitcoin-in-india/ and I came across this.
" I spent some time on the Foreign
Exchange Management Act, but it is
entirely out of the scope of Bitcoin. As
it is a decentralized currency, it can be
considered to be a domestic currency
since it is being mined in India. This
leaves it out of the scope of Foreign
Exchange."
This got me thinking if it is possible to get foreign investment through bitcoin for any business project in India?
I am considering something related to agro based industry and crypto related project which I have discussed here https://bitcointalksearch.org/topic/i-have-an-idea-need-suggestions-1820475

As long as u dont convert the bitcoin to INR, u r safe. The moment u convert, u need to do that as per remittance rules. If u want to invest that money, u'll most likely be subjected to money laundering.

But if it is declared as mined in india then it will not be considered foreign exchange.The foreigner would actually buy another crypto for bitcoin.

newIndia

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Quote from: Wapinter on March 17, 2017, 07:31:37 AM

I was reading this useful piece of information by Benson Samuel here https://bensonsamuel.com/bitcoin-3/reserve-bank-of-india-regulations-on-bitcoin-in-india/ and I came across this.
" I spent some time on the Foreign
Exchange Management Act, but it is
entirely out of the scope of Bitcoin. As
it is a decentralized currency, it can be
considered to be a domestic currency
since it is being mined in India. This
leaves it out of the scope of Foreign
Exchange."
This got me thinking if it is possible to get foreign investment through bitcoin for any business project in India?
I am considering something related to agro based industry and crypto related project which I have discussed here https://bitcointalksearch.org/topic/i-have-an-idea-need-suggestions-1820475

As long as u dont convert the bitcoin to INR, u r safe. The moment u convert, u need to do that as per remittance rules. If u want to invest that money, u'll most likely be subjected to money laundering.

Wapinter

legendary

Activity: 2688

Merit: 1026

Hire me for Bounty Management

I was reading this useful piece of information by Benson Samuel here https://bensonsamuel.com/bitcoin-3/reserve-bank-of-india-regulations-on-bitcoin-in-india/ and I came across this.
" I spent some time on the Foreign
Exchange Management Act, but it is
entirely out of the scope of Bitcoin. As
it is a decentralized currency, it can be
considered to be a domestic currency
since it is being mined in India. This
leaves it out of the scope of Foreign
Exchange."
This got me thinking if it is possible to get foreign investment through bitcoin for any business project in India?
I am considering something related to agro based industry and crypto related project which I have discussed here https://bitcointalksearch.org/topic/i-have-an-idea-need-suggestions-1820475

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