Virtual currencies, especially bitcoin, have captured the attention of the decisionmakers in the country. Multiple regulators, the government and other stakeholders are now closely watching this space. However, as of now, there is still no clarity on the regulations that are there for cryptocurrencies. Here is a roundup on the stance that each body has taken so far in this regard.
The Reserve Bank of India
In 2013, for the first time, the central bank sent out a cautionary note to the users, holders and traders of virtual currencies (VCs)—including bitcoin—about the potential financial, operational, legal, customer protection and security-related risks that they are exposing themselves to. “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,” the apex bank stated in a notification.
After this, in February 2017 and again in December 2017, the RBI reiterated caution on the risks of virtual currencies including bitcoins.
