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India's central bank issues Bitcoin warning, multiple exchanges halt operations
Bitcoin exchanges in India have halted operations after a public advisory issued by the country’s central bank highlighted the risks associated with virtual currencies. The first to close down was BuySellBitCo.in, an exchange that deals around 12 million rupees of Bitcoin transactions each month.
In a message on their website, the exchange said they were suspending buy and sell operations until they can outline a clearer framework with which to work. The move is being done to protect the interest of their customers and in no way is a reflection of Bitcoin’s true potential or price, the post concluded.
That kicked off a chain reaction among other exchanges such as INBRTC according to The Hindu. The news also prompted several Indian Bitcoin users to sell off their investments over fear of potential fluctuation in global prices. Bitcoin prices have been holding pretty steady following the news, however.
INBRTC said the only option for them was to suspend services until further arrangements could be made.
Specifically, the Reserve Bank of India (RBI) issued a notice that warned the public of risks involved with virtual currencies, including but not limited to money laundering, lack of regulation, speculation and volatility. Or in other words, the same types of concerns that we’ve been hearing elsewhere. It’s worth pointing out, however, that the RBI didn’t issue any sort of ban or other restrictions on Bitcoins or trading – just a warning.
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