Bitcoin operators shut shop in India amid RBI warning

Dec 26 2013, 17:11 IST
Comments 0
Bitcoin is a virtual currency that can be generated through complex computer software systems. Bitcoin is a virtual currency that can be generated through complex computer software systems.
SummaryRBI has warned against use of virtual currencies due to potential money laundering, cyber security risks.

the US, where authorities have decided to subject bitcoins to money laundering rules applicable to all other financial transactions in the country.

Regulators are also looking into claims being made by some entities of being registered bitcoin exchange providers, although they might have merely registered as a company with the Registrar of Companies for generic business purposes.

To make things worse, this virtual currency has become new tool for fraudsters who are promoting bitcoins as the next big investment products with unlimited returns.

A few complaints have already poured in about bitcoins being used by some operators in certain new-age and e-versions of multi-level marketing or ponzi schemes.

Regulators fear that this new phenomenon can give rise to a new kind of illegal investment schemes that could be very difficult to track and clamp down. There is almost zero physical activity when dealing in bitcoins and nearly all transactions take place in the electronic format.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...