My friend has a situation that he'd like assistance with -- we've looked online for help, but we cannot find clarity.
First let me 'set the scene'. Then I'll phrase the question concisely at the end.
He bought some Bitcoin in GBP (funded from a UK bank account). He ended up transferring it to an Indian based exchange (Koinex), then selling it for INR and withdrawing it to his Indian bank account. He would like to get some more Bitcoin, but it is cheaper to buy in GBP than INR.* His intent is to buy and sell quite a lot of bitcoin, potentially buying in GBP, then selling in INR and converting back to GBP.
*By this I mean, if 2 INR = 1 GBP, then you can buy, eg, 1 BTC for 1000 GBP on a European exchange or 1 BTC for 3000 INR on Koinex. So better to convert 2000 INR to GBP, get 1000 GBP then 1 BTC and have 1000 INR left over. (Values here are not intended to be correct!)
Now for the concise question.
There are various money laundering (and related) laws in India, in particular regarding sending INR out of India (which he would be doing). Is the above scenario breaking any of these?
I have found this article, and other similar articles, but I can't get any precise clarification regarding cryptocurrencies. They don't appear to be considered currency in India, but more like gold.
Any advice would be most appreciated, thanks! :)