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8 Steps to Build an Effective Network Marketing Strategy
Whether you work alone as an entrepreneur or as a part of a startup or an eCommerce website representative, networking marketing is worth looking into. In short, network marketing represents a unique and personal method of sales and advertisement. According to statistics, network marketing has shown consistent growth across the US, with average income for marketing representatives ranging around $55,500 on a yearly basis.

This is a nice sum to consider for the work it takes to represent a product portfolio in your local area. However, building an effective marketing strategy for this type of sales can be difficult. Let’s take a look at several tips which can help you create your own network marketing strategy and earn more revenue as a result.
1. Corroborate your Credentials
Due to the door-to-door nature of network marketing, the industry faced its fair share of accusations over the years. Many false advertisers have claimed to be representatives of certain companies in order to scam unknowing customers of their hard-earned money.

In order to avoid that, you should corroborate your credentials, claims and identity. Make sure to have legal paperwork with you, which states that you are indeed a salesperson for a network marketing firm and that you have permission and ability to sell their products.
- Build a Product Portfolio
Once you have the necessary paperwork ready, you can create a product portfolio which you will sell to potential customers. A product portfolio can consist of anything that you consider worth selling in your local area. Some of the most popular network marketing industries include fitness, makeup products and house appliances.

Joseph Frank, content marketing specialist at Top Writers Review spoke on the matter recently: “A good product portfolio is necessary in order for you and your company to appear professional to casual viewers. Create a list of products and services which are available for purchase and make sure that you always have those items available for sale.”
- Create a Customer Profile
Very few items can be sold to an unlimited number of people. This is because we differentiate customers based on their genders, age, lifestyle choices and professional occupations.

In order to know which people to target with your products, you need to create a customer profile beforehand. Take some time to consider who would be the perfect customers for the products you have on offer and make sure to market yourself to those people first and foremost.
- Develop a Sales Pitch
It can be very bad for your reputation to show up at a sales meeting without a sales pitch standing by. A sales pitch usually consists of a small “speech” in which you explain why your products are good for that particular customer.

Make sure to prepare answers if any of your customers ask something like “how are your products different than the competitors’?” since these are difficult questions to answer correctly. Be professional and respectful of other network marketing brands since it can damage your own credibility if you start gossiping.
- Provide Social Proof
Another point of contempt worth noting in terms of network marketing is the social proof involved – or lack thereof. People will rarely want to buy something without solid proof that the item works as advertised.

This means that you should have some customer reviews, sales data and the features & benefits list available for unsure customers. That way, you will add a sense of security and trust to your potential customers and ensure that they make the final purchase after being reassured of your products’ performances and quality.
- Establish a Social Media Presence
Customers often check online resources for additional information before making a purchase. It’s a good idea to create dedicated network marketing pages on platforms such as Facebook, Twitter and Instagram before you start the sales process.

This will allow your customers to check for more information online and come across your pages fairly easily. You can use these pages to post product discounts, sales updates, satisfied customer images and other marketing materials.
- Offer Verified Information
No matter whom you talk to in regards to your products, network marketing only works as long as you are honest about your products. After all, you want to build a business around product sales without relying on cheap scam tactics (as we’ve mentioned previously).

Brush up on the information surrounding your products and speak truthfully about their features, usage and pricing. Depending on whether you use door-to-door sales tactics or rely on an eCommerce website, you can offer product demonstration and trial periods to your customers. The friendlier and more helpful you appear to be, the easier it will be to seal the deal and sell a product.
- Follow-up and CTA
Lastly, even if a customer is reluctant and unsure of whether or not they want to buy your product, you still have a chance to sell. Calls to action are a great marketing tactic which can help you achieve bigger sales numbers in network marketing.

If your customer is passive and doesn’t ask any questions about your product, you can do that instead. Ask them whether they are happy with what they see, what they would use the product for and how does the price sound to their purchase abilities. Most importantly, ask your customers about when you can reach out to them to ask again about whether or not they will buy your products. Do your best to follow up on every sales attempt you made in order to get a second chance at selling your product to potential customers.

In Summation

Network marketing requires you to act like a professional salesperson if you want to succeed and build a career in the industry. If you choose to work with others in a network of salespeople, develop a clear plan on how you will do that.

Network marketing does allow you to cooperate with others and sell even more products through teamwork. However, in that case, you should create a business model and split your profits evenly between the members of your network.

Image source: https://www.pexels.com/photo/startup-planning-notes-mac-book-7357/

Author’s bio.

Daniela McVicker is a blogger with a rich experience in writing about UX design, content planning, and digital marketing. Currently, she is the chief contributor at Topwritersreview where she helps individuals and organizations improve their web content writing, design, and planning skills. Her posts are always packed with examples and actionable content that readers can put straight into action.
HOW FRAUDSTERS ARE ABUSING THE MLM INDUSTRY
There a big difference between multi-level marketing companies which promote products and which build a network through a pyramid scheme. In fact, the latter makes money only when people sign up to use the products for themselves.

According to many industry experts, the overall success of everyone depends on the ways in which the individuals receive commissions. While the company’s plan works in a different way altogether, everything boils down through the compensation plan. Some people may be tempted to use the IRs for their own benefits. But, rather than helping them grow with the business and be recognized for their accomplishments, such individuals tend to exploit the people under the network or the downline.

A well-known writer of a magazine stated that illegitimate MLM companies promise to offer incentives for those who bring in recruits. But, instead of focusing on the sales to end consumers, the prime difference lies only on commissions that are fetched from retail sales or inventory sales to other distributors.

Lawmakers and the industry have been put their efforts vigorously to face the worst problems. It’s also possible that people keeping an eye on the internet where doubtful charges may be highlighted in personal blogs. The person may claim to have earned from the business but that’s not the actual case. Abuses also occur in some situations, but independent representatives may collaborate with unscrupulous operators to act smart in the following ways.

Compensation plans with a promise

Sales representatives who are at the top of the pyramid might earn a good amount of money than the ones in the network. This surely indicates that everyone is involved with a pyramid scheme. The entire commission is earned only through appointing new individuals. On the other hand, the rest are at a big loss because the earning is not shared in any case.

Stockpiling

As someone comes up with the idea of network marketing, fraudsters assign the task the people for making purchases. As they join the network, they are qualified to earn commissions. But, this is a smarter way of running a network marketing business. The scheme is deemed to be Ponzi because the network grows simply because individuals have the only option to persuade others for buying the products.

Channel-stuffing

Coming up with a revised product is something that fraudsters think about. This would seem great and create an impression that the company is enhancing product development. But, eventually, the earlier products have to be disposed off because they are out dated. In fact, the independent representatives have to shell out more money to buy them. They have no other option if they wish to continue managing the business for a long term.

Insufficient controls

In the network marketing realm, the representatives are always trained not to make false claims. This might be often misleading when people come to know that it’s worthless to purchase the items. So, if this is not the case, then main motive would just be recruiting new people to the network. On the other hand, nobody would benefit as per the compensation plan the company has presented.

Pay to join

Requesting representatives to pay fees could sound fishy. Even if the prime motive of growing the network is fulfilled, the upstream individuals would only be earning. After all, a legitimate MLM business grows only when everyone seeks the potential of earning something extra. It should be far beyond what they earn from the nine to five jobs.

Doubtful sales tools

A new joinee may be persuaded to buy DVDs that are packed with a set of training sessions. This is often the best way to gather money especially when someone is a poor performer. The upline mates are bound to get something from them when they understand the situation they are going through. This could be considered as robbing money when the individuals are planning to move out from the network.

Indirect motivation

Motivation is something that organizations boost for their employees. Some MLMs just like to enhance it with messianic language. They may also put forth an impression of delivering the purpose and being involved in improving community living. Well, this is tactic to lead the representatives to be loyal. They still follow what’s been stated even when they are losing money. Nobody can ever figure out what might be happening behind the scenes.

According to a reputed Direct Sales Association, code of ethics has been presented to prevent abuse. But, on the contrary, the laws can be enforced in other regions of Asia. In many cases, everything is dependent on the management style, the skills with which the business is managed, and the long-term benefits that can be enjoyed. It could either be through ethical means or responsibilities in accomplishing the sales. In case someone needs assistance, then he can approach an MLM coach. This would lead him in the right direction and help him grow the network like never before.

Read MOre:
- SCAM Companies New Updated list
- Top MLM Companies of Network Marketing in India
e-Chat Final Round of ICO Is On, Stay Tuned

e-Chat is a beloved decentralized messaging app that is highly appreciated by millions of users worldwide. Since October 2017 e-Chat team has been running ICOs and the launch of the Third Round, and at the same time, the last one is scheduled on January 8, 2018. The coming ICO brings many surprises and one of them is the flexible system of discounts throughout the whole ICO period. No need to explain that the earlier you jump into investing and supporting e-Chat first decentralized messaging platform, the bigger discount for 1 ECHT (e-Chat token) is provided.

The Third Round of ICO lasts until February 15, 2018. The fluctuation of the price throughout it is the following:

– Throughout January 8-15 you can purchase 1 ECHT with 30% discount, for $1.05.

– From January 16 to January 21 the price for 1 ECHT is $1.125 (25% discount).

– January 22-31, the discount is 20% and the price for 1 ECHT is $1.20.

– February 1-8, 1 ECHT is sold for $1.275, with the 15% discount.

– During February 8-15, the discount is 10% and the price for 1 ECHT is $1.35.

The app has a couple of very strong features. First of all, the Blockchain background makes it extremely safe and protected. Secondly, e-Chat is a very bold attempt to combine the two spheres: social and financial because it’s the messaging platform with the inbuilt crypto wallet enabling instant financial transactions between the users of the app. Thirdly, the e-Chat team has introduced the function of crypto like that gives users the opportunity to support the content they like, going through the news feeds of others.

Apart from standard functionality embedded in the app, the e-Chat team keeps making the app better. In a very short period of time, the users will get exposed to the new design of the app. Be among the first to have a look at it, click here.

You are welcome to download the application on Google Play or App Store.

Highly skilled e-Chat international management team keeps welcoming new advisors. All of them are experienced entrepreneurs running companies and projects of their own. They have clear visions of how to nourish and support startups and projects based on the Blockchain technology. Please, follow e-Chat newsfeed to get to know all new coming advisors and team members joining the project.

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Disclaimer: The opinions expressed in this article do not represent the views of Networking Eye or any of its team members. NetworkingEye is not responsible for the accuracy of any of the information supplied in Sponsored Stories/Press Releases such as this one.
500 CR Webwork Scam: Shah Rukh, Nawazuddin Under CBI Scanner

The FIR registered against the Webwork on Tuesday by the CBI does not mention Shah Rukh or Nawazuddin as either accused or suspects.

The CBI has taken over the probe into the Rs 500 cr online cash-for-click scam.

The online ponzi scam, to be investigated by the CBI, was being run from UP’s Ghaziabad district by Webwork Trade Links Pvt Ltd.

The complaint has also mentioned the names of Bollywood stars Shah Rukh Khan and Nawazuddin Siddiqui, who had endorsed the Webwork’s shadow company Addsbook.com in 2016.

Addsbook.com was launched on December 10, 2016.

The FIR registered against the Webwork on Tuesday by the CBI does not mention Shah Rukh or Nawazuddin as either accused or suspects.

However, the CBI may seek a clarification from the actors, as reported by the First Post.

The CBI has taken over the probe into its hands from the UP police which was initially investigating the matter.

The UP police had registered a case against the promoters of Addsbook.com namely Anurag Garg and Sandesh Verma, who are accused of duping thousands of investors using the two Bollywood actors as brand ambassadors.

The complaint, which is now part of the CBI FIR, holds both the Bollywood stars equally responsible for the fraud the company has committed.

According to it, after seeing Shah Rukh and Nawazuddin as brand ambassadors of the Addsbook.com, people believed in the online ponzi scheme and made heavy investments only to be duped later.
OneCoin – Ponzi Scheme investigation in India
Key Highlights:
- Onecoin investigation in India by the EOW
- Four bank account uncovered with ₹19 crores and ₹5 crore approximately
The Government of Hungary is investigating OneCoin, a cryptocurrency investment scheme as a fraudulent Ponzi Scheme. German Regulators have also ordered OneCoin to ‘Dismantle their Trading System‘

The Economics Offence Wing investigates OneCoin in India

In India, the Economics Offence Wing (EOW), has been investigating the OneCoin for running Ponzi scheme. EOW is an extension of India’s Central Bureau of Intelligence (CBI) and India’s prime law enforcement agency.

Last month, 18 promoters of Onecoin held a recruitment seminar in Navi Mumbai.The Mumbai police attended the entire seminar unknown to the organisers posed as prospect investors and heard the whole presentation.

The company offered investment packages starting from ₹11,900 to ₹27 lakh. The investments were towards purchasing token ultimately used to redeem Onecoin. They were also told that they could check their profile in OneCoin website with the password credentials provided after investment.

76 people invested around ₹ 56 lakh after attending a previous seminar. As per the Mumbai police, OneCoin is not registered with the RBI. They confirmed that Onecoin does not have the appropriate license for running such financial schemes with an assurance of high returns.

RBI cautions users of Virtual Currencies against Risks

The police immediately arrested the organisers and the police have been investigating further to track the mastermind behind this scheme. As per Hemant Nagrale, Police Commissioner Mumbai, the accused were running this scheme in Navi Mumbai, Thane and other parts of Maharashtra

This month in May, the EOW, arrested Nayan Patel 28 and Amit Kedia, 32 in connection to OneCoin scam.

The EOW become involved in the investigation last month. It had formed a special investigation team consisting of 15 personnel and four officers.

Patel had earlier absconded, leaving India and travelled to Hong Kong from Dubai. Mumbai Police caught him at Mumbai International Airport while trying to return to India.

Four Bank Accounts Frozen After Investigation

The investigation from last month’s arrest of 18 people had led the EOW to four bank accounts. Two of these bank account named Premium Payment Solution. One of the bank accounts held ₹19 crores (approx. $3 million). Other account had ₹5 crore. The authority has now seized both these accounts.

As per the EOW’s investigation, two individuals, in particular, Mary Beyance from Mauritius and Ereena Andreva Belkinska from Bulgaria are the main perpetrators of the OneCoin scheme. Further investigation is being done in this regards.

EOW has arrested 20 people in association with the OneCoin’s operation in India. However, the investigation still continues.

No “official” statement released by Ruja Ignatova – CEO, OneCoin.

Related:
All You Need to Know About BitConnect Coin
If you are a Bitcoin and other cryptocurrency enthusiasts, there are a lot of positive developments happening. This Thursday Bitcoins traded at 1,20,00 INR/$1800 and broke all previous records. The reason behind this gain of more than 13000 INR/ $200 in last 15 days is the increasing demand from around the world. This recent trend added around $2 billion to bitcoin’s market cap. The current market cap of Bitcoin is estimated to be around $28.86 billion.

The recent acceptance of cryptocurrencies by some of the powerful economies in the world is the number one reason for the price rise of Bitcoins and other altcoins. Japan decided on April 1 to recognize bitcoin as a legitimate currency. The Australian government was not far behind in recognizing the potential of Bitcoin. Starting July 1 Australian government will be exempting double taxation along with trading and goods and services taxation on Bitcoin. Russia too is looking into legitimizing bitcoin.

It is also predicted that one Bitcoin will reach 2 lakh /$3000 by the end of 2017.

The Rise of BitConnect Coin (BCC)

In the cryptocurrency market, there are a lot of altcoins that have appreciated in value. One such altcoin is a UK base cryptocurrency start-up BitConnect Coin. It has declared an 18x rise in the value of BCC cryptocurrency. In less than seven months since its ICO in November 2016 BCC has risen its value per unit from $0.2 to $58 (7/7/2017). The huge acceptance of Bitcoin has mainly contributed to this upward trend of BCC and is expected to continue growing throughout 2017.

There are 28 million BCC and around 6 million pre-mined BCC coins are in circulation. BCC has also received a great response from markets around the world particularly the Asian market including India, Vietnam, Philippines, and Indonesia. This has also contributed to the rapid growth of BCC.

BCC has captured $49.7 million market cap and is currently a leading cryptocurrencies competing with other altcoins such as Lisk, Ardor, and Iconomi. BCC has a larger market cap than that of Iconomi which had raised more than $10.5 million in its first ICO.

What is BitConnect Coin?

BitConnect coin or BCC is a community driven decentralised cryptocurrency, just like Bitcoin. Through this channel, people can accumulate and invest their capital in non-government controlled digital currency, and even earn a sizeable interest on investment. The users holding BCC in their account also get interest on their balance in return for helping maintain the security of the network.

There are currently five exchanges, where investors and traders can buy, sell or exchange it for a different digital currency.

However, there is no information available on BitConnect Site about the founder of the BitConnect, the owner or about the physical location of its office, just like bitcoin.

Future of BitConnect Coin in MLM Industry

Bitconnect is a Bitcoin-focused multi-level marketing company. It presents substantial assets and e-currency brought together into one complete wealth building strategy

MLM companies have both haters and supporters and yet it is a sign of any industry’s growth curve. MLM companies will definitely bring more awareness about cryptocurrency to the public in general, besides creating new investment in cryptocurrency. It may likewise also bring new problems to an industry that already has its fair share of them.

Since MLM companies have constantly been under the radar of criticism and lawsuits in many industries few cryptocurrency enthusiasts are skeptical about dealing with MLM companies when it comes to cryptocurrency.

However, we need to remember that MLM, also known as “pyramid selling,” “network marketing” and “referral marketing” has existed since the 1920s. It still continues to find a place in many industries. At present, the role of MLM in cryptocurrency still remains to unfold.

How does the BitConnect ecosystem work?

BCC price is a perceived regard for its supply and demand features designed during bitconnect coin algorithm along with the bitconnect lending platform.

The future value of BCC is a result of many aspects coin supply mining and minting algorithm, BitConnect community network, and its features.

Why will it have upward graph in the future?

Because there is a fixed steady supply of new coins with a strong demand channel of more members joining the bitconnect ecosystem to lend or buy the BCC.

Simply put, the system functions in such a way that it will self-regulate the bitconnect ecosystem leading to the creation of more wealth in the entire bitconnect community in near future.

How are the BitConnect Coins used?

The BitConnect community members can use the BCC to store and later invest the capital in other forms of cryptocurrency.

How are BitConnect Coin produced?

The BitConnect Coin network uses special algorithm viz POW/POS. Once you obtain BCC it becomes an interest giving asset with 120% return per year through Proof of Stake minting.

To earn with this system all you need to do is to hold coins in your Bitconnect-QT wallet.

Besides PoS minting, CPU/GPU is also used to mine BCC and does not need an ASIC miner, unlike Bitcoin.

BitConnect Compensation Plan

Bitconnect promises its Members that they can earn daily profits by investing either bitcoin or USD into the company. The amount of money the members invest in BitConnect decides the daily profit or ROI the member can earn.

BitConnect offers four main investment levels:
- Investment between $100 and $1000 assures monthly ROI of 40% paid out for 299 days
- Investment between $1010 and $5000 assures monthly ROI of 40% paid out for 239 days. They are also eligible for an additional bonus ROI of 23.9%.
- Investment between $5010 and $10,000 assures monthly ROI of 40% paid out for 179 days. They are also eligible for an additional bonus ROI of 35.9%.
- Investment between $10,010 and $100,000 assures monthly ROI of 40% paid out for 120 days. They are also eligible for an additional bonus ROI of 30%.
BitConnect also pays Referral commissions in addition to the existing ROI model.

BitCoinnect referral commission is an unlevel structure. It places an affiliate at the top of a uni-level team. Every personally recruited affiliate placed directly under them (level 1):

The affiliate’s personal new recruit is level 2 and the personal new recruit of the Level 2 is automatically placed under as Level 3 and so on and do forth. The level can theoretically go one for infinity.

Referral Program

Events & Workshops Photo Gallary
- Top MLM Companies of Network Marketing in India
Network Marketing Companies seek protection under Consumer Protection Act

Network Marketing and Direct Selling companies in India are facing a lot of problems while operating in the Country. The current provision of criminal proceedings in the case of discrepancies is hampering the growth of these companies in India. Hence these Direct selling companies have urged the Indian Government to extend protection under the Consumer Protection Act.

QNet said,“Certain individuals have been filing criminal complaints directly with the state police, without even attempting to contact the concerned company for resolution first,” in response to the guidelines issued in September 2016 by the Ministry of Consumer Affairs.

QNet urged the customers to approach the concerned company first in case of any complaints about the products. However, currently, this is not happening. The customers are registering complaints with local police without even seeking for resolution with the concerned Direct Selling Company first.

Network Marketing Companies have submitted affidavit to the Supreme Court

In response to the draft guidelines of the ministry, QNet has submitted its affidavit to the Ministry of Consumer Affairs. Its Indian franchisee Vihaan Direct Selling (India) Pvt Ltd, submitted the affidavit on behalf of Qnet Chief Executive Officer of QNet Ltd, Trevor Kuna said.

According to the sources, Amway, Mediocre, Herbalife, Tupperware and Oriflame have filed affidavits to the Ministry of Consumer Affairs. These companies are also into Direct Selling Industry.

In the submission to the Ministry, a senior executive of the company said “These guidelines are a progressive step in the direction of reforms for the direct selling sector. Given the thriving industry in India and a healthy growth trend over the last few years as reported by several trade bodies and chambers of commerce, the guidelines will help with sustainable development of the industry,”

Billiards champion Michael Ferreira and Vihaan’s Indian shareholder got a bail from the Supreme Court last week. He was earlier arrested on criminal charges in September 2016.

Court said Criminal law cannot be set in motion to settle civil disputes

The Karnataka High Court also stated, “Criminal law cannot be set in motion to settle civil disputes by giving the color of criminality.”But due to the lack of regulation, various courts have enforced acts like the Maharashtra Protection of Interest of Depositors (MPID) Act and the Price Chits and Money Circulation (Banning) Act (PCMC), and categorized the complaint under criminal offenses.

A city-based independent legal expert, Vishwanathan Iyer observed, “Lack of a regulatory framework and concrete laws to guide players in the business has held back the growth of this industry in the Indian context so far. Acts like Maharashtra Protection of Investors Deposit (MPID) Act and the largely misused Price Chits and Money Circulation (Banning) Act (PCMC), have been irrationally been used against the Direct Selling Industry.”

An industry player has urged all the other industry players and industry bodies to come and work together on a common platform with the Ministry of Consumer Affairs to convert these guidelines into legislation.

The Supreme Court while granting bail to Ferreira said that Direct Selling is not a Ponzi scheme. Direct Selling Industry in India accounts to approximately $1.18 billion in revenues in 2015. It is 22nd in the list of top 25 countries in the world. As per a FICCI – KPMG report, around four million people are earning their livelihood from this industry in India. This figure is only expected to grow by 2025 to approximately $9.8 billion.
All you need to know about the Legal Status of bitcoin in India

The recent incident where the major Indian newspapers have misrepresented the issue of the legality of bitcoin in India has sparked an urge to call for the Indian government to clearly state its position on the legitimacy of bitcoin.

Status of Bitcoin’s legality in India

Last week, an Indian News Media incorrectly reported that the Minister of State for Finance had deemed bitcoin as illegal which caused a major stir nationwide.

However, at no point has it been explicitly stated that bitcoin is illegal as per the published respond by the Minister of for Finance, Shri Arjun Ram Meghwal, on March 28, 2017, to the question put forward by Dr K.V.P. Ramachandra Rao.

The absence of counterparties in the usage of [virtual currencies] including bitcoins, for illicit and illegal activities in anonymous/ pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws.

The statement by the Minister of Finance could probably be a response to concerns raised by BJP MP Kirit Somaiya last week. Somaiya had called for the regulation of bitcoin calling it a hypothetical currency and questioned if it was a “pyramid Ponzi type scheme.”

Press Trust of India, a non-profit cooperative that makes for the largest news agency in the country, had reported Meghwal’s statement. This report was splashed and duplicated by major newspapers and TV media stations giving it a sensationalist angle.

This incident has sparked an urge to call for the Indian government to clearly state its position on the legitimacy of bitcoin.

A petition has been created on Change.org urging the Indian Government to announce bitcoins and cryptocurrencies as legal. It already has 9852 signatures as on April 2, 2017. Another petition of similar scope has 1164 supporters.

In the meantime, the Government of India has set up an internal committee to discuss the legality of cryptocurrencies. The committee will be releasing its official response regarding the legality of cryptocurrencies in India on April 20, 2017.

RBI cautions users of Virtual Currencies against Risks (Dec 24, 2013)

RBI stated in the circular that ” The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities. As such, they may pose several risks to their users” Link

Formation of DABFI for the growth of Virtual Currency Market

The lack of any regulatory bodies to regulate the do’s and do not in the virtual currency market, has lead four startup companies, viz, Cryptocurrency Zebpay, Unocoin, Coinsecure and Searchtrade to jointly launch the Digital Asset and Blockchain Foundation of India (DABFI).

The DABFI will underline self-regulatory regimes for the trading of bitcoins and other blockchain based digital assets. They will also regulate KYC/ AML/ STRS norms for the member companies.

An International law firm, Nishith Desai Associates, has been chosen to develop self-regulations for the industry.

A committee has been formed which is spearheaded by the CEO of Zebpay, Saurabh Agrawal. Sandeep Goenka (Zebpay), Mohit Kalra (Coinsecure), Sathvik Vishwanath (Unocoin), Harish B V (Unocoin) and Vishal Gupta (Searchtrade), Rashmit Gupta (Searchtrade) are the members of this committee.

CEO of Zebpay, Agarwal said,”This organisation aims to drive education and create the market for blockchain and bitcoin in the Indian market which is now on the path of the digital economy. Our vision would be to work with regulators and develop a strong framework for our industry to provide required impetus for the growth of the industry.”

As per Sathvik Vishwanath of Unocoin, the price of bitcoin was $450 per bitcoin in February 2016. It has increased to $1100 in February 2017 per bitcoin. The DABFI would also caution ordinary people, with no understanding of the digital currency market, not to be lured into ‎trading in bitcoin as it is volatile.

With the new records of the cryptocurrency in the month of January 2017 at $990.87, there has been considerable interest from users. The currency is slowly and gradually gaining ground and is being accepted as a means of payment for mobile recharge, payments for DTH , online shopping and countless list. There are as many as six million bitcoins trade happening every day across the globe.

Why the hype and confusion around Bitcoin?

BJP MP Kirit Somaiya’s concern over the digital currency is not unexpected. In last one year, the price of bitcoin has increased 214 percent to an all-time record high of USD 1,300.

The currency does not promise any return on investment, except for capital appreciation. However, in the words of the CEO and founder of Searchtrade, “The problem lies with MLM companies who have picked on its popularity and used it to sell unsustainable financial schemes to people.”

Future of Bitcoin

As per the CEO of Unocoin, a popular bitcoin wallet, Sathvil Vishwanath, the rates of bitcoin has increased since they have started dealing into it, however, post-demonetisation demand from India has also increased manifold. On Indian exchanges, the bitcoin prices are being quoted at 25-30 per cent higher than cost.

Sandeep Goenka, CEO of Zebpay, one of the largest bitcoin exchanges in the country, said, “Indians are enquiring about bitcoins as an alternative and safe investment option. They are downloading Zebpay as they want to experiment with digital currencies. There has been a 50 percent increase in Zebpay downloads.”

Other bitcoin trading exchanges also confirm that they have witnessed a rise in user base by 250 percent but added that the amount of transaction India does in the digital currency is still relatively low.

More than 300 million people in India use their phones to frequently access the internet, which also allows them to freely deal in bitcoin. Zebpay, one of India’s largest trading platform, expects to add 50,000 users a month. Unocoin too announced that they had broken all records last month and 1,600 merchants.

This surely points towards the fact that bitcoin has a strong potential for growth in India.

In December 2016, The Indian finance ministry formulated a committee known as Watal committee for the purpose of studying the digital payment and blockchain technology. As per the statement, the digital currency is cost efficient for government and hence there will be more tax vigilance and will be resistant to counterfeiting.

Recently in 2017 RBI’S institute for Development and Research in Banking Technology (IDRBT), issued a white paper and pilot tests for blockchain technology. So we may see digital currency in circulation, sooner than we expect.

But Bitcoin is not without limitations, as it is only a mere digital code has no intrinsic value and is not backed by gold, silver or anything tangible. Who knows what will be the future of currency, but a majority of experts in economics believe that only a currency with intrinsic value will be ultimate fate. As Ayn Rand has said “you can ignore reality, but you can’t ignore consequences of ignoring reality”

Legal Status of Bitcoin in other countries

Japan is the first country to accept Bitcoin as a legal tender. The USA is already doing a huge number of micro transactions every day in bitcoin. Over 260,000 Japanese stores will be accepting Bitcoin as currency for transactions.

It is a clear indication that the Bitcoin adoption will only increase – Japan and worldwide.

The Russian Government has already confirmed the legal status of the cryptocurrencies like Bitcoin. The Government defines digital currencies including Bitcoin as foreign currencies.

Even the Australian Government are open to Cryptocurrencies like Bitcoin. Buying and mining of Bitcoins are not considered illegal and companies are also allowed to trade in Bitcoin.

Belgium too seems to be pretty welcoming towards the use of Bitcoin. The Finance minister has stated that they see no reason to object the use of Bitcoin and that the national banks would not have any objection.

The Canadian government has also embraced Bitcoin and said that any Bitcoin transaction will be viewed as barter transactions and profits will be taxed.

The United Kingdom has till now voted in favour of Bitcoin and has given it a legal status however the Government has not yet ruled Bitcoin as a currency.

The Chinese Government initially were in favour of Bitcoin. However, with large investments pouring into Bitcoin, the government started issuing warnings against the currency.
SC Grants Bail to Ferreira and Stays 19 Qnet FIRs
Key highlights:
- Stay on 19 Qnet FIRs by the Supreme Court
- Micheal Ferreira and Malckolm Noser Desai granted bail
Supreme Court stay order brings a relief to Qnet

The decision of the Supreme Court brings a relief to Qnet as the Supreme Court passed a stay order in all the 19 FIRs against the direct Selling Company QNet. The court has also granted bail to former world billiards champion Micheal Ferreira and along with another official of firm’s Indian Franchise in the cheating case.

The two officials of the Vihaan Pvt Ltd, Micheal Ferreira and Malckolm Noser Desai were alleged of running a Ponzi scheme and violating the laws of India and were arrested six months ago.

Justices Pinaki Chandra Ghose and Rohinton Fali Nariman, who consisted of the bench, said that there shall be a stay of further proceedings in all the 19 FIRs on basis of the grounds stated in the petition of the duo.

After the Supreme Court has refused them anticipatory bail in September 2016, they had surrendered themselves before a trial court in Mumbai.

The bench granted them relief stating, “Having regard to the fact that the petitioner 2 and 3 before us viz., Michael Joseph Ferriera and Malckolm Nozer Desai are detained in jail custody for about 6 months, they are directed to be released on bail, subject to certain conditions.”

They have been directed to provide bail bonds of Rs.25, 000 each along with two sureties of the same amount to the contentment of the trial court concerned.

The court has also asked them to submit their residential address to the trial court and to mark their presence at the concerned police station. They have also been forbidden to any changes in their residential address without the knowledge and permission of the trial court.

They are also required to deposit their passport to the trial court and cooperate with the investigation.

QNet in Mumbai has issued a statement, that the petition challenged that the business model of Vihaan Direct Selling (India) Pvt Ltd is not a money circulation scheme as alleged. Hence, it does not fall under the scope of the Prize Chits and Money Circulation (Banning) Act, 1978.

The company further added that it has also been argued that Vihan’s business was in accordance with all the legal requirements of doing business in India.

Chief Legal Officer of QNet, Raj Vasudevan said “This order is a vindication we have been seeking for more than 3 long years.

“It has come at a very apt time when the government is trying to instil confidence in this industry with the introduction of Model Direct Selling Guidelines.”
ED Attaches Assets Worth Rs 35 cr of Two MLM Companies

The Enforcement Directorate (ED) has attached assets worth over Rs 35.84 crore of two MLM companies running Ponzi schemes in Chennai and Odisha, an official said.

The move was part of the ED’s crackdown against private companies running Ponzi schemes in different states.

The economic law enforcement agency took the step under the Prevention of Money Laundering Act on Thursday, it said.

Of the total attachment, assets worth Rs 35.55 crore belong to Chennai-based RMP Infotech and of Rs 29.45 lakh to Rajasthan’s Jaipur-based Many Mantra Marketing Private Limited, operating in Odisha.

The case under PMLA was initiated following three charge sheets filed by CID in eight FIRs registered at different police stations of Andhra Pradesh against the company RMP Infotec and its directors including Pravin J Chandan, Rajesh J Chandan and Dilip J Chandan, invoking Section 120-B (criminal conspiracy, 420 (cheating) of the Indian Penal Code (IPC) for operating money circulation scheme ( Ponzi Scheme) by paying commission for enrolling members and selling product kits, which is banned under Prize, Chits & Money Circulation (Banning) Act, 1978. Also, they cheated buyers/distributors by promising huge commissions which are impossible.

“ED attaches assets worth Rs 35.55 Crore under PMLA of RMP Infotech and Rs 29.45 lakh of Many Mantra Marketing,” an Enforcement Directorate official told IANS.

The official said that RMP Infotech and Many Mantra Marketing have been running their Ponzi schemes business in Chennai and Odisha, respectively.

–IANS