Active Stocks
Fri Mar 01 2024 15:29:51
  1. Tata Steel share price
  2. 150.60 6.88%
  1. State Bank Of India share price
  2. 770.00 2.76%
  1. Tata Motors share price
  2. 977.50 2.81%
  1. ITC share price
  2. 410.25 0.92%
  1. ICICI Bank share price
  2. 1,084.35 2.93%
Business News/ Industry / Banking/  RBI says it hasn’t authorised use of Bitcoins, flags risks
BackBack

RBI says it hasn’t authorised use of Bitcoins, flags risks

RBI warns those investing in virtual currencies like Bitcoins are exposing themselves to potential financial, legal and security related risks

RBI flagged issues surrounding valuation of Bitcoins, saying there was no underlying asset and there was lots of speculation in it. Photo: AFPPremium
RBI flagged issues surrounding valuation of Bitcoins, saying there was no underlying asset and there was lots of speculation in it. Photo: AFP

Mumbai: The Reserve Bank of India (RBI) on Wednesday said it has not authorised dealings in or use of virtual currencies, and cautioned those investing in the instruments like Bitcoins.

“The RBI advises that it has not given any licence/authorisation to any entity/company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc., dealing with virtual currencies will be doing so at their own risk," it said in a statement.

ALSO READ: Towards a digital future

Those investing in such virtual currencies are exposing themselves to potential financial, operational, legal, customer protection and security related risks, it warned.

The apex bank also drew attention to a December 2013 notification cautioning the investors against the same. RBI had said then that the virtual currencies stored in e-wallets were exposed to hacking and in the absence of any regulations, users were exposed to lack of recourse in case of any problems or disputes.

The central bank had also flagged issues surrounding valuation, saying there was no underlying asset and there was lots of speculation in it, and those who trade on unregulated platforms face legal and financial risks.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Feb 2017, 08:18 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,075.72.05%
₹1,402.751.86%
₹1,053.452.94%
₹121.952.38%
₹749.32.71%
Switch to the Mint app for fast and personalized news - Get App