Topic: UNOCOIN INTRODUCES BITCOIN SYSTEMATIC INVESTMENT PLAN – 0% FEE (Read 2672 times)

The deposit of INR that is not used to get bitcoins or used for SIP will be returned after 90 days or on 31st March (year ending) which ever happens first. We define 90 days as 1 business cycle. So that new company act do not affect us.

The program helps you to buy BTC using INR at regular intervals automatically which the customer could also do manually in absence of SIP.

We had consulted our compliance and auditor even before we started the program. Now I have consulted our compliance team regarding the same in the light of the references provided and we are good with our program.

What your team looked up about the issue that the ctptosec mentioned above?

SIP is a concept where you break down your investment into smaller manageable pieces.

As per our compliance and lawyers, Yes you would need NBFC if you loan out the deposits you have collected or if you need to keep that money for more than one business cycle. Here is the info on how we manage INR wallet for our customers https://www.unocoin.com/post/335

This is as far as I know or as far as I can comment.

Thank you for the references you have provided. I have forwarded it to our compliance team to be looked into.

It's not much clearer in your OP, so I asked you. Anyway I would like to share few thoughts on this.

As per the SEBI Master circular (http://www.sebi.gov.in/cms/sebi_data/attachdocs/1337083696184.pdf) dated May 11, 2012, only Asset Management companies and Mutual fund trusts can issue SIPs with NAV.

Lets say Bitcoin is not comes under securities nor your company is not listed in SEBI hence this will not applicable to you.

As per RBI guidelines certain categories of NBFC's (https://www.rbi.org.in/commonman/english/Scripts/FAQs.aspx?Id=377) can collect money as deposits.
Let’s say you are not collecting deposits, you are collecting money against the good or service hence you are not comes under NBFC

As per the Companies (Acceptance of Deposits) Rules, 2014, an advance in lieu of supply of goods will not be a deposit only if it is appropriated and the goods supplied within 365 days.”

The rules further state that “any amounts received by a company, whether in the form of installments or otherwise, from a person with a promise or offer to give returns, in cash or in kind and any additional amount contributed by the company (Bitcoin in your case), will also be considered as a deposit.”

The Act also holds that any company that raises money from the public for tenures of more than 365 days has to get rated for its repayment capacity from a credit rating agency and take deposit insurance.

As of my knowledge you are private limited company and may comes under this law.


I have to give few cases , which may helpful to you to consult your compliance head.

SAHARA house who is backed by NO:1 corporate lawyers grilled under SEBI act.

Jeweler companies backed by TATA and Reliance (Tanishiq , Tata Jewelers and Reliance Jewelers ) stopped Gold monthly schemes cause of new companies act( http://www.thehindubusinessline.com/features/investment-world/beyond-stocks/the-game-has-changed-for-gold-saving-schemes/article6160266.ece)

I know you are well reputed company backed by big corporate lawyers and big investment companies. Your scheme really apprehension by Bitcoin community and no doubt on it but may comes under compliance violation. You may consult your compliance dept to avoid that.

It is mentioned in the OP

Do you guys know what is SIP meaning?

Hello,
Bitcoin is an international currency and you cannot always identify from where the bitcoins are coming unless the receiver reveals it. This is true with every broker/exchange all around the world. However we clearly inform people not to do any such money laundering or illegal activities in our terms of service and take it ahead from there.

If you are talking about people from outside India participating in SIP - then they are supposed to have PAN card, address proof and indian bank account to get their account verified and they are also supposed to have indian mobile number where they answer the verification call. Possible they fly to some other country on business trips or what ever reason but still use Unocoin to buy and sell bitcoins.

Regards

As I understand, people from outside India can also participate in it as you are accepting bitcoin. But will not that constitute money laundering and thereby putting you in legal trouble ?

Yes as long as you can send INR to our account and accept INR to your account, this is valid.

Is this valid for Nri's as well ?

Systematic Investment Plan (SIP) is a new and exciting way to acquire bitcoin – the first of its kind.

Rather than spending all of your money on bitcoin at once, this is a more conservative approach towards investing in bitcoin. This technique allows you to commit a fixed INR amount towards bitcoin on a regular schedule irrespective of the price. You need to fund your INR wallet and schedule the orders to start with SIP. You may invest as little as 50 INR per interval. This feature helps with financial discipline by averaging out your cost and there by reducing your risk and exposure.

Whats more? Enjoy 0% transaction fee until April 30th, 2015.



Source:  https://www.unocoin.com/post/346