India’s Central Bank Warns, Again, About Bitcoin.
The Central Bank of India, for the second time in 2017 has issued a public warning about cryptocurrencies and especially Bitcoin. Said exhortation was made public by a public notice on December 5, where the adopters are warned of the possible economic, financial, operational, legal, client protection and safety-related risks that may arise when dealing with digital coins.
The bank also reiterated its position of not authorizing or licensing “any entity/company to operate such schemes or deal with Bitcoin or any VC”, in a repeat of its warning from February this year. India’s central bank issued its first warning against bitcoin in December 2013, telling adopters that the “creation, trading and usage” of bitcoin as a medium of payment wasn’t authorized by any central bank or monetary authority, at the time.
Unlike the warnings issued by the bank previously, this last warningincludes a warning about initial coin offerings, a popular new form of fundraising where companies raise capital in cryptocurrencies like Bitcoin, for example. The Bank specifically reiterated the following:
“In the wake of significant spurt in the valuation of many VCs and rapid grown in Initial Coin Offerings (ICOs), RBI reiterates the concerns conveyed in the earlier press releases.”
In April, Indian authorities launched the ‘Virtual Currency Committee’, an interdisciplinary working group of representatives from multiple Indian governmental ministries and banks to research and propose a regulatory framework for cryptocurrencies in India. The committee is believed to have submitted its report to Indian finance minister Arun Jaitley in August. The contents and subsequent verdict on the regulatory and legal outcome of cryptocurrencies continues to be kept under wraps.
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