Currently, bitcoins and any other crypto currencies, are not an approved form of currency by the Reserve Bank or any other regulator as so far it has not posed any systemic risks. But the Bitcoins cannot be ignored, regulator SEBI chairman Ajay Tyagi today said and a government panel is looking into it. The panel, also consisting of finance and information technology ministries, is looking into the aspects of Bitcoin and the "Block chain technology”. He said there is a kind of unanimity emerging about subjecting such trading to laws against black money, money laundering and frauds so that the interest of general public remains safeguarded.
A gravity-defying bitcoin rallied to over Rs 10 lakh a unit, interspersed with stories of people making crores from thousands, has left the regulators flummoxed.
The RBI has been issuing warnings since 2013, the first time when the surge in bitcoins caught the attention of Indians, but risks have multiplied manifold now in the wake of a significant spurt in the valuation of many such virtual currencies and a rapid growth in initial coin issuances.
Some entities have begun resorting to initial coin offers to raise funds from investors, including HNIs and other individuals, who are getting lured into claims of huge returns from bitcoins and other such variants--apparently getting minted in the digital world but also reaching the real world including as wedding gifts.
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