India: Bitcoin exchanges shut down after RBI warning

Friday 3 January 2014 00:22 CET | News

India’s multiple online exchanges, including the biggest Bitcoin trading platform,, have suspended their operations, following a warning against the digital currency from the country’s central bank.

As reported by The Hindu, 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

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, 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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Categories: Payments & Commerce
Countries: World
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