RBI reiterates warnings about trading in Bitcoins

RBI reiterates warnings about trading in Bitcoins

The Reserve Bank of India (RBI) on Tuesday reiterated its concerns about Bitcoins, just days after the cryptocurrency hit a record high of just under US$11,800, stoking fears that a rapidly swelling bubble could burst in a spectacular fashion.

Bitcoin (virtual currency) coins placed on Dollar banknotes are seen in this illustration picture, November 6, 2017. REUTERS/Dado Ruvic/Illustration

MUMBAI: The Reserve Bank of India (RBI) on Tuesday reiterated its concerns about Bitcoins, just days after the cryptocurrency hit a record high of just under US$11,800, stoking fears that a rapidly swelling bubble could burst in a spectacular fashion.

The RBI said it wanted to reinforce its previous message to "users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs."

The statement was issued after the cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as US$11,799.99 on the Luxembourg-based Bitstamp exchange on Sunday.

The RBI had previously said those trading in virtual currencies were doing so at their own risk, given that the central bank has not given a licence or authorisation for any company to deal in such cryptocurrencies.

(Reporting by Rafael Nam; Editing by Subhranshu Sahu)

Source: Reuters

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