Digital Currency Faces Setback in India

The Reserve Bank of India (RBI) has issued a warning on the risks of virtual currencies, and the country's largest Bitcoin trading platform has shut down.

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BuySellBitCo.in closed its platform on Dec. 27, citing the RBI advisory. "We are suspending buy and sell operations until we can outline a clearer framework with which to work," BuySellBitCo.in says in a notice on its website.

The RBI detailed five major risks, including hacking, lack of a centralized agency to supervise virtual currencies, the lack of assets to back virtual currency, vague legal status for the exchanges in some jurisdictions and the potential of virtual currency to fund and hide illegal activities.

India's central bank says it is examining the issues associated with the use, holding and trading of virtual currencies under India's legal and regulatory framework.

John Adams

Executive Editor, Payments

John Adams is executive editor of payments for American Banker. John interviews top executives in the payments, cryptocurrency and fintech... Read full bio

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