India's central bank issues Bitcoin warning, multiple exchanges halt operations

By on December 27, 2013, 3:00 PM
india, bitcoin, virtual currency, bitcoin exchange, trading

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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1 person liked this | davislane1 davislane1 said:

"...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."

So, basically, Bitcoin has the exact same characteristics as every financial instrument ever created.

yRaz yRaz said:

Bitcoin isn't really any different than investing in a stock as far as the UPS and downs of the values go. Unless banks actually feel threatened by BC, I don't understand why they are making suck a big deal about it. Let people buy, sell and trade whatever they want, it's their money.

hitech0101 said:

Yes the RBI only pointed it out for people not to be cheated off their hard earned money. People from villages with little knowledge of these things loose a lot of money in many 'schemes' that promise high returns. this is just a public advisory.

Guest said:

All currency is virtual! The coins and paper we carry in our pockets are just ways of convincing us that it's a real commodity!

Banks illegally lend money they don't have and then charge interest on it! It's called fractal reserve banking. Bitcoin is being used as propaganda by the media to brainwash us into the idea of achieving a single global "virtual" currency. Debt is unreal, just a figure on a computer. Hitting delete eradicates debt. It's that simple!!

No currency = no greed, no crime, no rich, no poor, all equal!

Humanity now more than ever needs a world without currency. Would you choose to live in a consumerist hell with corporations and banks controlling us and robbing us blind and politicians sanctioning in favor of their every move or should we rid ourselves of this diseased monetary system we live in and take back control of our lives?

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Humanity now more than ever needs a world without currency.
Good luck with that, trading in your crops and oil paintings for something to eat. Without the middle man know as currency, we return to trading items of value instead of using a common item assigned a specific value. As long as greed is allowed to spawn, there will be those who horde regardless of what is given value. What we use as common ground in trade value between us is not the problem. Allowing one person to think their hourly labor is worth more than another is the problem.

davislane1 davislane1 said:

Good luck with that, trading in your crops and oil paintings for something to eat. Without the middle man know as currency, we return to trading items of value instead of using a common item assigned a specific value. As long as greed is allowed to spawn, there will be those who horde regardless of what is given value. What we use as common ground in trade value between us is not the problem. Allowing one person to think their hourly labor is worth more than another is the problem.

I agree with everything you've said but this. Labor price is based upon the same supply and demand principles as any other good. Greater supply/demand for one job and less supply/demand for another means different average prices. Ergo, a hedge fund manager's job is worth more than a grocery clerk's and an aircraft mechanic's job is worth more than a window cleaner's.

The real problem is not that people believe their hourly labor is worth more than someone else's, it's that the powers that be have been eroding the ability of people to move up the food chain by selling them bogus products and philosophies.

No currency = no greed, no crime, no rich, no poor, all equal!

At no point in the history of man has there ever been no greed, no crime, no rich, no poor, or equality. The only thing abolition of currency will achieve is to further tilt the table in favor of highly savvy negotiators and businessmen (see: rich people).

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Ergo, a hedge fund manager's job is worth more than a grocery clerk's and an aircraft mechanic's job is worth more than a window cleaner's.
That is what I disagree with. If there is a job that needs to be done, it is just as worthy of equal pay as any other. If there is a job not worthy of equal pay, then it really doesn't need to be done.

davislane1 davislane1 said:

That is what I disagree with. If there is a job that needs to be done, it is just as worthy of equal pay as any other. If there is a job not worthy of equal pay, then it really doesn't need to be done.

According to this logic, the labor of a brain surgeon who spends 8hrs removing a tumor from a patient is worth as much as a janitor's who spends 8hrs sweeping floors. If we hold this to be true, either the tumor doesn't really need to be removed, the floor doesn't really need sweeping, or both.

Naturally, all three conclusions are absurd as the jobs' performance is contingent upon a need. This begs the question, what is your basis for equality? Simply stating that all jobs are worth x / hr. is like saying everyone in a race is a winner for having run it, regardless of their finishing position. It ignores the economic impact of the labor performed (direct and indirect value created) and substitutes it simply with work x time. The latter is emotionally appealing, but completely unworkable in practice.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Please you are leaving out self-gratification. As for equality, lets just say I can tell you are not very biblical and leave it at that.

davislane1 davislane1 said:

I was just trying to make conversation on the issue and explore your reasoning; there's no need to launch personal attacks by calling me a bad Christian. If I'm wrong, where am I wrong?

I am curious to know where I've deviated from Biblical teachings, though. According to my understanding of scripture, equality has to do with sin and the merit one has in God's eyes. Income inequality is only mentioned when it involves shenanigans (ripping people off, greed for the sake of greed, excessive self-indulgence, etc.). In no way have I suggested that people should be shortchanged, hoodwinked, or otherwise ripped off. I've merely stated that all tasks are not of equal economic value (an objective reality). If having more material wealth than another man is inherently bad from a Biblical perspective, how are we to reconcile the fact that Job was both fantastically wealthy and held in high regard by God (see Job 1:1-3, 8)?

Anywho, I very much doubt most of the people here are interested in the theological implications of Bitcoins and income differences, so, as you said, we can just leave the conversation here. I sense a hoard of blood-thirsty Guests waiting to pounce on any mention of God, the Bible, or inequality. :p

cliffordcooley cliffordcooley, TechSpot Paladin, said:

and leave it at that.

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