Despite a recent public advisory that made headlines warning Indian citizens of bitcoin perils and pitfalls, the country has no plans to establish regulation of the digital currency, according to KC Chakrabarty, deputy governor at the Reserve Bank of India (RBI).
The news doesn’t come in a positive light, however. RBI has no plans to establish regulations on the bitcoin economy not because they see promise in bitcoin, but because they don’t completely understand it.
“Regulation comes only when people are doing certain business and we come to understand that something wrong is happening. First of all we don’t understand this subject,” said Chakrabarty. “But, at present, what we are saying is neither we regulate them nor we support them.”
On one side, it’s good news in that the Indian authorities aren’t dropping the banhammer on bitcoin. On the other hand, Chakrabarty’s statements may bring a level of uncertainty to those exploring bitcoin and other digital currencies.
“Whether it is… legal or illegal, we don’t know. If it crosses the limit of legality then people may face a problem. So people should be cautious, should understand.” ()
