Bitcoin, the popular virtual currency, is facing regulatory hurdles in India. A recent directive by the Reserve Bank of India (RBI) has cited decentralisation as one of the reasons for cautioning users against the currency
The directive advises users not to use virtual currencies, including Bitcoin
, because of their "potential financial, operational, legal, customer protection and securityrelated risks".
Following the caution, Indian trading platforms such as INRBTC.com and buysellbitco.in, have suspended activities. There were also Enforcement Directorate raids on some of the offices of trading platforms, even though the law regarding the use or trade of virtual currencies is still unclear.