India Cent. Bank: Use Bitcoin, Risk Charges

Use of digital currency like bitcoin is not authorized and could lead to charges of money laundering, an India government spokesman said.

The Reserve Bank of India (known as RBI) is the country’s central bank and money authority, wholly owned by the Indian government. A statement clarifying the bank’s position was issued in the last day.

“The absence of counter parties in usage of virtual currencies, including bitcoins, for illicit and illegal activities in anonymous/pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism,” said a statement from Minister for Finance Arjun Ram Meghwal. “No regulatory approval, registration or authorization is stated to have been obtained by the entities concerned for carrying on such activities.”

The RBI warned that anyone – a bitcoin holder, user, investor, or trader – would be dealing with the cryptocurrency at their own risk.