It is completely acceptable that bitcoin has capabilities to enhance security, and possess many characteristics which could make transaction cheap. Also, these currency are not authorized by any bank and hence not dependable. While Bitcoin is getting popularity in the world, the inherent risk with it cannot be ignored. Unsurprisingly in India, Bitcoin exchange service has been suspended indefinitely due to the tough regulation made by RBI over the virtual money.
They’re reacting to a warning issued on Tuesday by the Reserve Bank of India, the country’s central bank, which cautions citizens against acquiring and trading virtual currencies. The RBI didn’t outright ban the currencies, but it slammed them as risky and potentially illegal:
It is reported that VCs [virtual currencies], such as Bitcoins, are being traded on exchange platforms set up in various jurisdictions whose legal status is also unclear. Hence, the traders of VCs on such platforms are exposed to legal as well as financial risks.
There have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities in several jurisdictions. The absence of information of counterparties in such peer-to-peer anonymous/ pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws.
It is not the idle time for some people, who started building interest over this virtual money, maybe some banks could be upset, lets see who all comes out? RBI has hit Bitcoin when it was booming in the market, and it would now need additional considerations from Bitcoin to convince RBI and other dignitaries in this field.
Please Follow For Continuous Update
- Bitcoin – Virtual Money (abfreshmind.wordpress.com)
- RBI warns against Bitcoin use in India (thehindu.com)
- Reserve Bank of India : RBI cautions users of Virtual Currencies against Risks (4-traders.com)
- Bitcoin operators shut shops in India amid RBI warning (thehindu.com)
- Bitcoin gang gets 67 new e-curriences; value grows to $13 bn (thehindu.com)
- Indian Bitcoin Exchanges Halted As Government Shifts Capital Control Attention Away From Gold (zerohedge.com)
- Bitcoin Exchanges In India Shut Down After Regulator Warning (techcrunch.com)
- Bitcoin operators shut up shop in India amid RBI warning (news.in.msn.com)
- Indian Bitcoin exchanges suspend operations after gov’t warning (venturebeat.com)