Reserve Bank of India warns users of virtual currencies

The Reserve Bank of India (RBI) has cautioned the users, holders and traders of virtual currencies (VCs), including Bitcoins, about the potential financial, operational, legal, customer protection and security-related risks involved.

The RBI said it has not given any licence or authorisation to any entity or 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,” the RBI said.