NEW DELHI: India’s biggest Bitcoin trading platform suspended its operations after the central bank warned against the risks of using virtual money, according to a note posted on their website. BuySellBitCo.in closed its platform, citing an advisory issued by the Reserve Bank of India highlighting the risks of trading in digital currencies. “We are suspending buy and sell operations until we can outline a clearer framework to work with,” BuySellBitCo.in said adding that the move was to protect the interest of their customers. The central bank’s warning comes after Bitcoin, which can be stored either virtually or on a user’s hard drive and offers a largely anonymous payment system, had begun gaining popularity in India. According to the central bank there was no underlying or backing of any asset for virtual currencies. The move comes weeks after the People’s Bank of China ordered financial institutions not to provide Bitcoin-related services and cautioned against its potential use in money-laundering.
Published in The Express Tribune, December 29th, 2013.
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