MoS finance Arun Ram Meghwal further said the creation of virtual currencies such as Bitcoin as a medium of payments is not authorized by any central bank or monetary authority. Photo: BloombergNew Delhi: The use of virtual currencies, such as Bitcoin, is not authorized by the banking regulator Reserve Bank of India (RBI) and could result in breach of anti-money laundering provisions, the government said on Tuesday. Meghwal further said the creation of virtual currencies such as Bitcoin as a medium of payments is not authorized by any central bank or monetary authority. “No regulatory approval, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities,” Meghwal said. RBI has already cautioned users, holders and traders of virtual currency, including Bitcoin, about the potential financial, legal and security risks arising from the usage.

Source: Mint March 28, 2017 16:41 UTC