While India has not officially adopted a stance for or against virtual currencies, the Government and the Reserve Bank of India have periodically warned against the risks associated with them. The RBI has now reiterated its warning against virtual currencies.
Reiteration of Risks Involved
In a press release, the Reserve Bank of India has stated:
In the wake of significant spurt in the valuation of many VCs and rapid growth in Initial Coin Offerings (ICOs), RBI reiterates the concerns conveyed in the earlier press releases.
The RBI had previously in 2013 and early 2017 highlighted the risks associated with cryptocurrencies. It had clarified that it has not given any licence/authorisation to any entity to operate in the Bitcoin space and users were doing so at their own risk. It highlighted the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such virtual currencies…