Is this way of forex trading legal?

#1
I know depositing funds via credit cards, bank etc..in online Forex brokerages that allows EUR/USD sort of pairs is illegal.It violates the FEMA act and disturbs foreign exchange balance.
My question is,
Would it be illegal if I trade currency pairs NOT involving INR, with using Skrill or Bitcoins as my deposit method. BTW i earned the Bitcoins and Skrill from internet freelancing and doesn't involve INR at all.
Thanks in advance
 
#2
I think that without involving INR it is legal since your country not make new regulation and must involving INR. Just keep making earn without any tax for your goverment guys.
 
#3
Yeah Hii there,
Indian Exchanges (NSE, BSE, MCX-SX) offering forex instruments allow you to trade freely. Currently, you can only trade in currency pairs involving INR and there are 4 such pairs. These are USD/INR, EUR/INR, GBP/INR and JPY/INR. Trading on other pairs is illegal under Foreign Exchange Management Act (FEMA) which restricts you from forex trading in domestic as well as international markets and doing so is considered Non-Bailable Offence.
 
#4
Just my thought, If you earn money via freelancing earned in dollar say. Then it's should be out of the indian jurisdiction? Right?

Using that money for trading shouldn't be illegal. As you are not sending money from your home country to other overseas broker. Earned outside & Spend outside.

Plus if you make profit & send them back to your indian account if its taxable. Then pay taxes. That's all. Pay Taxes government will be happy. isn't it? Nothing to complain.

Regards
 

goldenedge

Well-Known Member
#6
No. What you're doing is perfectly legal because it doesn't involve INR. It's out of RBI's control.

The only issue you might face is while converting btc to inr. (I think some new websites exist. But not sure)
 

Hulu Girl

Active Member
#7
Forex trading in India is illegal where there is no involvement of Indian Rupee. You can trade with involvement of Indian Rupees like USDINR, EURINR, GBPINR or JPYINR.
 

stoch

Active Member
#8
Forex trading in India is illegal where there is no involvement of Indian Rupee. You can trade with involvement of Indian Rupees like USDINR, EURINR, GBPINR or JPYINR.
Yeah I'm from India and I trade with Hotforex without any problems I even don't need to pay taxes because I use online payment systems to withdraw profit
 
#9
Yeah I'm from India and I trade with Hotforex without any problems I even don't need to pay taxes because I use online payment systems to withdraw profit
You have very liquid FX futures (USDINR). And if you wanna trade other non INR currencies than wait your exchanges will start to offer 3 new non-INR currency futures EUR/USD futures, GBP/USD Futures and USD/JPY futures contract size (1000 EUR,GBP,USD)
 

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