In at least three instances, the Reserve Bank of India has warned the investors regarding the "potential economic, financial, operational, legal, customer protection and security related risks” associated with the trade of cryptocurrencies.
Finance minister Arun Jaitley said last week that India does not recognise cryptocurrency as legal tender 'as of now'.
"Recommendations are being worked at. The government's position is clear, we don't recognise this as legal currency as of now," Jaitley said when asked whether the government has taken any decision on cryptocurrency.
Jaitley though confirmed that the Department of Economic Affairs (DEA) had constituted a committee with representations from DEA, Department of Financial Services (DFS), Ministry of Home Affairs (MHA), RBI, Niti Aayog and SBI, and it has submitted its report. The report is being examined, he said.
Earlier in August, during the monsoon session of parliament, the finance minister had informed that there are no regulations governing virtual currencies, including bitcoins, in India and the RBI has not given any licence to any entity/company to operate such currencies
