If someone from India were to send bitcoins to obtain service from a person from another country or to buy something from a company abroad like overstock how would it come into the law?
if we are to treat bit coin is an asset, it would not come under FEMA, right?
could it violate any other law?
This goes back to the currency vs commodity debate.
If it is treated as a currency, then it will come under FEMA.
You are correct on this matter i think their is a thread in which question is raised that what is bitcoin, a currency , commodity or what. It is still in confusion. I think it matter to what country are you going to trade, and what that country treat bitcoin as a currency or commodity. Till then nothing can be said.