As reported by The Hindu, BuySellBitCo.in shut down two days after the Reserve Bank of India (RBI) issued a public advisory detailing the risks of using Bitcoin and other digital currencies. Soon, other exchanges, such as INBRTC, followed suit, according to Wired.com.
On 24 December 2013, the central bank issued a notice, warning the public of the risks involved with virtual currencies while claiming that it could be used for money laundering and funding anti-terrorism activities. It stopped short, however, of issuing a ban or any other restrictions.
Bitcoin and other virtual currencies have begun to gain widespread acceptance in India, despite poor internet penetration and a natural scepticism to assets not backed by tangible entities such as land.
The move comes weeks after the Peoples Bank of China ordered financial institutions not to provide Bitcoin-related services and products and cautioned against its potential use in money-laundering.
According to coinmarketcap.com, which currently lists 67 cryptocurrencies, the total market value of all virtual currencies is USD 12.94 billion as at 30 December.
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