Intelligence agencies warn government of Bitcoin misuse

NEW DELHI: Intelligence agencies have warned that virtual currencies such as Bitcoin may be used to fund illegal activities and move funds through hawala transactions and the government will look into the issue with the Reserve Bank of India (RBI) to ensure such new payment methods are not misused.

“At present we have no mechanism to deal with such mediums. The expertise from RBI will be used to come with specific measures to tackle such issues,” said a government official aware of the concerns raised by the intelligence establishment.

Intelligence agencies have also apprised the government that in some countries virtual currency platforms such as Silk Road and Liberty Reserve were tried as unregistered money transmitters.

“Specific inputs have been received that in some cases these virtual currencies were used for hawala transactions,” said another official, who did not wish to be identified. One bitcoin is at present equal to around $640.

“As of now it is not illegal to buy or sell Bitcoins or any other currency because they are on peer to peer exchange platforms. We are not intending to stop it but ensure checks and

Read more ... source: TheBitcoinNews