Govt forms panel to study virtual currencies framework

Dinesh Sharma, special secretary in the economic affairs department, will chair the nine-member committee to study framework on virtual currencies including bitcoins


Circulation of virtual currencies which are also known as digital/crypto Currencies has been a cause of concern. Photo: Reuters
Circulation of virtual currencies which are also known as digital/crypto Currencies has been a cause of concern. Photo: Reuters

New Delhi: The government has formed a panel to study the existing framework for virtual currencies such as bitcoin.

A finance ministry statement said Dinesh Sharma, special secretary in the economic affairs department will chair the nine-member inter-disciplinary committee. The committee has been tasked to submit its report within three months.

Circulation of virtual currencies which are also known as digital/crypto Currencies has been a cause of concern, the statement said.

“This has been expressed in various fora from time to time. Reserve Bank of India had also cautioned the users, holders and traders of virtual currencies (VCs), including bitcoins, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to vide its press releases dated 24 December, 2013 and February 1, 2017,” it added.

The panel will also have representatives from department of economic affairs, department of financial services, department of revenue, home ministry, IT ministry, Reserve Bank of India, NITI Aayog and State Bank of India.

The committee will take stock of the present status of virtual currencies both in India and globally, examine existing global regulatory and legal structures governing them, suggest measures on consumer protection, money laundering , etc; and examine any other relevant matter related to virtual currencies.

More From Livemint