RBI deputy governor K C Chakrabarty makes a statement on Bitcoin!

[Benson Samuel]

http://timesofindia.indiatimes.com/business/india-business/RBI-asks-people-to-be-cautious-of-bitcoins/articleshow/28062292.cms?intenttarget=no

[thenoblebot]

Haha you beat me to it .... is quite funny when he says "first of all we don't understand ...."

+1 for honesty
-1 for not putting the effort

[dishwara]

COIMBATORE: The RBI has no plans to come up with a regulatory framework for Bitcoins, the virtual currency, which has risen sharply in value in the past few months, a top official said.

"Regulation comes only when people are doing certain business and we come to understand that something wrong is happening. First of all we don't understand this subject," RBI deputy governor KC Chakrabarty said.

"But at present what we are saying is neither we regulate them nor we support them," he said on the sidelines of an interaction session with entrepreneurs organised by the Indian Overseas Bank here on Saturday. Saying that regulations on Bitcoins have not been imposed anywhere else in the world, Chakrabarty said those who understand it and take a risk are free to do so with their money. "Whether it is... legal or illegal, we don't know. If it crosses the limit of legality then people may face a problem. So people should be cautious, should understand," he said.

The steep rise in the value of Bitcoins caused concerns prompting the RBI to issue an advisory on December 24 cautioning the general public against using them due to potential money laundering and cyber security risks.

A number of entities offering Bitcoin services have suspended their operations temporarily or indefinitely following the advisory. On the potential of cyber fraud involving Bitcoins, the RBI official said it was an issue that has to be tackled by the security agencies of the government.