The use of virtual currencies such as Bitcoins can result in the breach of anti-money laundering laws, Minister of State for Finance Arjun Ram Meghwal on Tuesday said in the Rajya Sabha. The usage of the cryptocurrency as a mode of payment has not been authorised by any monetary authority, he added.
“The absence of counter parties in the 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 laws,” Meghwal said.
The Reserve Bank of India has cautioned about the financial, legal and security risks arising from the usage of Bitcoin. Bitcoin is a digital currency and is accepted all over the world. However, it does not have any regulatory body. Similar to any other currency, Bitcoin prices keep fluctuating depending on the demand, supply and a host of other factors.