'Bitcoin' becoming a bit too big; regulators scramble for normsAs Bitcoin becomes more popular day by day, regulators are getting worried about potential money laundering risks associated with this digital currency and its possible misuse by fraudsters to lure gullible investors into 'e-ponzi' schemes.
Adding to the challenges posed by Bitcoin before the regulators, this e-currency is already being accepted by some online retailers in countries like the US, China and a few others, for various purposes including pizza delivery.
Hardly three years into existence, Bitcoin has already become the world's most expensive currency with a per unit value of over $1,000 or about Rs 63,000, and it is posing all possible questions to regulators in India -- whether to regulate it or not, who should do it, what should be the norms, how to regulate etc.
Those looking at this new phenomenon include almost all financial sector regulators as also agencies mandated to handle economic crimes, such as RBI, Sebi and various agencies under the Finance Ministry, a senior official said.
When contacted, an RBI spokesperson said, "As of now we don't regulate bitcoins, but are observing developments."
While regulators are tight-lipped about their plan of action, a senior official said that one possible way forward can be following the US, where authorities have decided to subject bitcoins to money laundering rules applicable to all other financial transactions in the country.
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