Government sets up committee to examine bitcoins issue

Against the backdrop of an RBI caution against the use of virtual currencies, including bitcoins, the Finance Ministry on Wednesday said it has constituted a committee to examine existing regulatory and legal framework on the issue.

The inter-disciplinary committee chaired by Special Secretary (Economic Affairs) has been asked to submit its report within three months.

The committee will take stock of the present status of virtual currencies, both in India and globally.

"It will examine the existing global regulatory and legal structures governing the matter and suggest measures to deal with it, including issues relating to consumer protection and money laundering," a ministry statement said.

The committee will have representatives from Departments of Economic Affairs, Financial Services, and Revenue (CBDT), Ministries of Home Affairs and Electronics and Information Technology, Reserve Bank of India, NITI Aayog and the State Bank of India.

The Reserve Bank of India had recently cautioned the users, holders and traders of virtual currencies about the potential financial, operational, legal, customer protection and security risks.

--IANS

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