Indian Bitcoin Exchanges Shut Down After Banking Regulator Issues Warning

Bitcoins were just starting to become popular in India

Bitcoins exchanges in India are getting shut down after the country’s banking regulator warned against the cryptocurrency.

The Reserve Bank of India (RBI) didn’t really say much on the topic of Bitcoin over the past several weeks, despite strong reactions coming from a number of countries, including China. Several days ago, however, the RBI said that the Bitcoin users had not obtained any regulatory approvals yet, warning that anyone associated with them was put at risk, The Hindu reports.

“There have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities in several jurisdictions. The absence of information of counterparties in such peer-to-peer anonymous/ pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws,” said RBI.

Bitcoin exchanges were just beginning to become popular in India as more and more people started using the virtual currency.

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