Ensure virtual currency is not used for terror funding: SC to Centre

Written by July 14, 2017 15:49

New Delhi: Supreme Court has asked the government and the Reserve Bank of India (RBI) to check for bitcoin transactions in relation to terrorism funding and money laundering.

The court has given four weeks to examine all security related issues pertaining to virtual currency, including BitCoin.

A PIL claimed that RBI was failing to regulate transactions in virtual currency. It also said alleged that virtual currency was being used for terror funding and money laundering.

There is no clear law stating whether BitCoin and other crypto-currencies are legal in India. However, such currencies are being widely traded.

The circulation of virtual currencies, also known as digital/cryptocurrencies, has been a cause of concern with experts voicing their worries at various fora from time to time.

The Reserve Bank had already cautioned the users, holders and traders of virtual currencies, including bitcoins, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to.

The government had in April this year constituted an inter-disciplinary committee to examine the existing framework for virtual currencies, including bitcoins, and suggest measures to deal with issues like money laundering.