is it legal if i trade of virtual currency like: pay pal, liberty reserve

Querist : Anonymous (Querist) 04 March 2011 This query is : Resolved
i am looking for the advise from all that.
I want to start a legal business of trading of virtual currency, which are base of USD.
We can send or receive payments from all over the world.
I have many customers who purchase virtual currency from me.
As i want to know the legality to do this type of business.
there are several list of virtual currency like:
www.paypal.com
www.alertpay.com
www.libertyreserve.com
www.moneybookers.com
www.webmoney.com
and many more.

i requested to rbi to give knowledge of this type of business. but there was not a single reply of my 5 request.
there are many exchangers available in the market from india.
if you search buy liberty reserve in india. you will find out many result those do trading of liberty reserve usd from india.
As i know there is not any information available on the RBI site.
As RBI has bann one company named 'EGOLD' in 2007. but there are several company works in india also. and there are 10% of indian user from all over the world.

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mahendrakumar (Expert) 05 March 2011
would you please clarify the term "virtual currency".

As I understand,trading is done one virtual currency,nobody really gain or loss,similar to the trading offered by moneybhai.com in equities,wherein you can engaging in virtual trading of equities,for gaining experience in real trading later.

In that case,why should there be a license for that as no real money is involved?

Querist : Anonymous (Querist) 05 March 2011
virtual money like
if you want to buy something on net or invest it to somewhere u not need to open your pocket for credit card or debit card.
you just need to purchase it from the exchanger available from your city or country and send it to the seller or service provider.
it will be accepts like credit card payment or like net payment from your bank account.