NEW DELHI, India—Concerned over the adverse impact of virtual currencies such as Bitcoin on the consumer, the government of India has established a committee to consider ways of regulating the fast-growing segment to curb money laundering.
The move comes amid apprehension that black money hoarders may have resorted to virtual currencies and Bitcoins to launder their cash, Altcoin Today reported.
Bitcoins have been banned in several countries, including Russia, on grounds that the virtual currency could be used for money laundering or financing terrorism. The panel has been asked to suggest measures for dealing with virtual currencies including issues relating to consumer protection and money laundering, Altcoin Today reported.
“The circulation of virtual currencies which are also known as digital and crypto currencies has been a cause of concern,” India’s finance ministry stated in a release.
Since December 2013, the Reserve Bank of India had also cautioned users, holders and traders of virtual currencies, such as Bitcoins, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to, Altcoin Today noted.