NEW DELHI: In a bid to fix the regulatory gaps in the existing framework for virtual currencies, including
bitcoins, the government has formed a time-bound inter-disciplinary committee to recommend an action plan for dealing with such currencies.“The circulation of virtual currencies which are also known as digital/crypto currencies has been a cause of concern. This has been expressed in various fora from time to time,” the finance ministry said in a statement on Wednesday. The statement said Dinesh Sharma, special secretary in the economic affairs department, will chair the nine-member inter-disciplinary committee. The committee has been tasked to submit its report within three months.
The Reserve Bank of India had also cautioned 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, the ministry said.The panel will also have representatives from the Department of Economic Affairs, Department of Financial Services, Department of Revenue, home ministry, IT ministry, Reserve Bank of India, NITI Aayog and State Bank of India.The committee will take stock of the present status of virtual currencies both in India and globally, examine existing global regulatory and legal structures governing them, suggest measures on issues including consumer protection, money laundering, and examine other relevant matter related to virtual currencies.