Finance Ministry sets up panel to take stock of virtual currencies

NEW DELHI: Finance Ministry today constituted an inter-disciplinary committee to examine the existing framework for virtual currencies, including bitcoins, and suggest measures to deal with issues like money laundering.

The committee, to be chaired by special secretary (Economic Affairs), will submit its report within three months, a finance ministry statement said.

The inter-ministerial group will have representatives from revenue department, home ministry, RBI, ministry of electronics and information technology and State Bank of India.

The committee will take stock of the present status of virtual currencies, both in India as well as abroad.

It will also examine the existing global regulatory and legal structures governing virtual currencies and suggest measures for dealing with issues like consumer protection and money laundering.

The circulation of virtual currencies, also known as digital/cryptocurrencies, has been a cause of concern with experts voicing their worries at various fora from time to time.

The Reserve Bank had already cautioned the users, holders and traders of virtual currencies, including bitcoins, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to.