India may crackdown on bitcoins
The prevalence has caused some concerns in the government due to its hidden nature.
New Delhi: The Centre may crackdown on bitcoins. An inter-disciplinary committee has recommended shutting down cryptocurrency dealers in India to restrict the use of virtual currencies in the country, said reports on Thursday.
The news comes at a time when bitcoin value rocketed above $7,000 for the first time ever on Thursday, after a more than sevenfold increase in its value since the start of the year. Its value has grown faster than any other asset class in the world in the last one year.
Currently, there is no regulation on such virtual currencies in India. The aggregate value of all cryptocurrencies is now at a record high of over $190 billion.
The Centre had set an inter-disciplinary committee chaired by special secretary economic affairs and representatives from department of economic affairs, department of financial services, department of revenue, ministry of home affairs, ministry of electronics and IT, RBI, Niti Aayog and SBI to study virtual currencies and how government should deal with it. The prevalence has caused some concerns in the government due to its hidden nature.