The article clearly states that :
.. Bitcoins is not authorised by the
RBI and could result in breach of
anti-money laundering provisions.
this implies that anyone using or trading bitcoin can be booked under money laundering Act.
Terrorism has been a menace since two decades without bitcoin.
Stupid move to blame bitcoin for terrorism.
Exactly. Relating Bitcoin with money laundering is crazy under current system. This is how a typical transaction takes place.
- I (trader) deposit fiat money in xyz exchange and buy BTC
Off-course, funding will be done via Internet banking and or use of credit / debit cards and no cash is involved in this scenario.
- I (trader) buy bitcoin for fiat money and then I can either withdraw in form of BTC or sell it for fiat and withdraw fiat in my bank account
Again, no cash transaction is taking place.
Not to mention; one has to verify his identity and go through KYC and AML before withdrawing and or depositing fiat.