Is it legal to start ICO in india? | Bitcointalksearch.org

Thyristor

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

I have seen and working a lot of in Indian ICO projects. But your kind information Nano Health Care Technology https://www.nhct.io/
You can personally contact with team member about all legal aspects you want to know i hope you will get help.

eaLiTy

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Have Fun )@@( Stay Safe

Quote from: imstillthebest on February 02, 2019, 02:58:10 AM

i heard a post lately which says that india is banning crypto's . ico might also be affected with that ban . not sure if india already lifted that law . anyway , an ico means online and that also means it is not a country specific because not only indian people can invest on your project . and even if the indian country will ban sites that are related to cryptos , you can still access them using vpn and proxy tools .

It is a gray area as there is no clear regulations as for now and the RBI has issued a ban to conduct business with crypto currency related exchanges and for the past few months none of the exchanges as far as i know is not allowing fiat deposit or withdrawals, i heard about p2p model being run in India successfully but there is a direct ban for these activities from the RBI, that being said i do not think any ICO could make an impact if they are planning to source money from India as they will get into legal troubles.

KingScorpio

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

all kapitalists are naturally in a zero sum game in india. so the established more powerful ones will try naturally to corrupt legislation to limit the amount of other capitalists, so the supply of money stays low, and the population cant earn enough and has to work hard to earn enough

imstillthebest

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i heard a post lately which says that india is banning crypto's . ico might also be affected with that ban . not sure if india already lifted that law . anyway , an ico means online and that also means it is not a country specific because not only indian people can invest on your project . and even if the indian country will ban sites that are related to cryptos , you can still access them using vpn and proxy tools .

Siren

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

You should have posted this thread in your section in which You can find here

https://bitcointalk.org/index.php?board=89.0

You can have more accurate answer from your countrymen since the issue tackels about Indian government stand regarding ICO

Though as what i am seeing in some discussions here that India’s Rural Bank (RBI)has a negative approach in crypto and I believe in ICO also

Thanasis

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Looks like OP is not much more interested about launching ICO in India and this thread become 1+ year old now without and discussion from OP.

Ridwan Fauzi

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Quote from: avikz on January 16, 2019, 05:53:37 PM

Quote from: Aeny France on January 14, 2019, 04:53:50 AM

Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

Before the execution of the Inter-Disciplinary Committee on ICO and Bitcoins, the Indian government had a negative view towards digital money and expected that these conflict with the Anti-Laundering laws. The Inter-Disciplinary Committee has suggested the usage of Know Your Customer or KYC Forms and make it obligatory so as to control its safe and anchored dealing with. The said board of trustees likewise needs to make changes in the Reserve Bank of India Act, 1934 and needs to bring cryptocurrency under the cover of RBI Act 1934. Cross Border installments finished with the assistance of cryptographic money would go under the FEMA Act to address the issue of remote trade.

Just to add that the nature of ICOs is very similar to "collective investment scheme" regulated by SEBI. So it won't come under the purview of RBI looking at the nature of their business. The entire matter is really confusing right at this moment.

However, I came across a document from one of our forum members in local India section. Even if it's not related to ICOs directly, but it surely talks about cryptos in India and its current status.

https://loksabha.nic.in/Questions/QResult15.aspx?qref=76359&lsno=16

I guess the article must be considered by OP. ICO is part of cryptocurrency and until now based on the article India still has not received a cryptocurrency properly.

I think a regulation can hamper cryptocurrency if the regulation is negative for cryptocurrency, so everyone who wants to develop a cryptocurrency in his country will be hindered by the government. It's different when a country provides positive regulation on cryptocurrency so that it can make cryptocurrency develop and be used by everyone.

marcbitcoins

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The Indian government still did not declare Bitcoin is legal in the country therefore you should wait for their Crypto resolutions which is hopefully by this year to avoid any future difficulties that may arise if they declared it illegal. Once Bitcoin become legal then you could ask your Internal revenue agency regarding business taxes as ICO is also a business.

avikz

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Quote from: Aeny France on January 14, 2019, 04:53:50 AM

Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

Before the execution of the Inter-Disciplinary Committee on ICO and Bitcoins, the Indian government had a negative view towards digital money and expected that these conflict with the Anti-Laundering laws. The Inter-Disciplinary Committee has suggested the usage of Know Your Customer or KYC Forms and make it obligatory so as to control its safe and anchored dealing with. The said board of trustees likewise needs to make changes in the Reserve Bank of India Act, 1934 and needs to bring cryptocurrency under the cover of RBI Act 1934. Cross Border installments finished with the assistance of cryptographic money would go under the FEMA Act to address the issue of remote trade.

Just to add that the nature of ICOs is very similar to "collective investment scheme" regulated by SEBI. So it won't come under the purview of RBI looking at the nature of their business. The entire matter is really confusing right at this moment.

However, I came across a document from one of our forum members in local India section. Even if it's not related to ICOs directly, but it surely talks about cryptos in India and its current status.

https://loksabha.nic.in/Questions/QResult15.aspx?qref=76359&lsno=16

Aeny France

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

Before the execution of the Inter-Disciplinary Committee on ICO and Bitcoins, the Indian government had a negative view towards digital money and expected that these conflict with the Anti-Laundering laws. The Inter-Disciplinary Committee has suggested the usage of Know Your Customer or KYC Forms and make it obligatory so as to control its safe and anchored dealing with. The said board of trustees likewise needs to make changes in the Reserve Bank of India Act, 1934 and needs to bring cryptocurrency under the cover of RBI Act 1934. Cross Border installments finished with the assistance of cryptographic money would go under the FEMA Act to address the issue of remote trade.

if you have any doubts or interest to launch ICO, Ping in WhatsApp: 919500575285

Fire Rabbit

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Quote from: rasl.curt on December 05, 2017, 08:53:23 PM

As per my knowledge there is no legal issues till now . As there hasn’t been any ICO done in India .But soon one ICO is going to be held in India . Let’s wait and watch .

Thats not correct. There were so many ICOs from India. I think not many were aware about that. Humaniq and BitIndia ICOs were from India. Also gexcrypto ICO which is still running is from India. The main problem what I see in starting an ICO in India, is dealing with the income tax department. They will torture us asking for the source of income.

rasl.curt

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As per my knowledge there is no legal issues till now . As there hasn’t been any ICO done in India .But soon one ICO is going to be held in India . Let’s wait and watch .

avikz

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

I believe India haven't yet said anything official about it. Neither about the bitcoin or Cryptocurrency as a whole, nor about ICO. However, a majority of governments are seeing ICO as a very controversial method of raising funds. USA and China have already banned ICO and Canada government has started taking stern actions against suspicious ICOs. So it will be advisable not to start an ICO in My India.

Flor1982

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

I think it is impossible to facilitate an ICO in India because your government thru India Central Banks still on the process to make some regulations prior declaring legality of all digital currencies in your country therefore better if you contact your Central Bank directly to clear out things to avoid you from any problem that may occur in the future and also to save your efforts, time and money.

1NV3ST0NM3

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Yes, until now there is no specified law which makes it illegal to start an ICO in India. Anyone can pickup some crowdfunding from the cryptos. But yes I would also say that starting an ICO is not that easy. If govt. hasn't declared it illegal nor are they saying its legal therefore you might get no support from govt. Then every expense of your ICO can't be met using merely crypto you need some fiat conversion and getting that is too difficult in India.

Fire Rabbit

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Quote from: Kemarit on December 02, 2017, 05:20:01 AM

India is still in the gray area as far as bitcoin and crypto is concern. So I think can launch ICO from India but you have to follow their strict law. I'm sure that India will require you to pay tax if you are generating income from their country. You should be ready all your documents and data information just in case for KYC/AML protocols. Source of income? The capital you have raised during your ICO phase. Its going to be intricate but I'm sure you can go ahead and establish your ICO there. And as long as you are complying, there's no need to worry though. Just don't try to scam and run out the money of your investors though. If you know what I mean.

Now I got the point. I know we can start an ICO in India without any problems. Because bitindia and gexcrypto both just finished their pre ICO wonderfully without any problems . But my doubt was regarding the source of income. Thank you for hinting me about the KYC/AML protocol. Actually it didn't come to my mind.

glowing10

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As of now there is no clear direction regarding the bitcoin in India. Government has warned the citizens to use a cautious approach as it is not being regulated by anybody and also can fall in price if it is a bubble. So even if somebody wants to launch an ICO they would require some approvals I think after which only they will be able to take money form people.

Kemarit

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Quote from: Fire Rabbit on December 01, 2017, 09:56:25 AM

Guys i want to know the legality of starting an ICO in India. I have a plan to launch an ICO and i am studying the legal aspects of it. I noticed that Last month bitindia launched an ICO. My doubt is after starting an ICO, if income tax department enquire about the source of income, what will I say? How will i show them the source of income?

India is still in the gray area as far as bitcoin and crypto is concern. So I think can launch ICO from India but you have to follow their strict law. I'm sure that India will require you to pay tax if you are generating income from their country. You should be ready all your documents and data information just in case for KYC/AML protocols. Source of income? The capital you have raised during your ICO phase. Its going to be intricate but I'm sure you can go ahead and establish your ICO there. And as long as you are complying, there's no need to worry though. Just don't try to scam and run out the money of your investors though. If you know what I mean.

Aamir1

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Will it be a good idea actually? There are probably a bunch of bitcoin users from every corner of India, but they are not too many i guess, and the government as well have never taken any notice about Bitcoin in India as long as i know. So starting an ICO before inquiring all these things won't be a wise move. You should first do a good research to find out whether you have a good enough population of crypto lovers around you, so that you can get some investors for your ICO from there, because you will most likely get your first investors from there and later on others will start trusting your ICO if they see a base.

bosede1

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A similar post has been posted here of recent you can check this thread for relevant information. Still all roads are leading to the point that bitcoin is not yet legalized there. Do your findings well before dabbing into any ICO

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