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The Reserve Bank of India (RBI) on Friday said dealing in cryptocurrency will encourage illegal transactions. The RBI has already issued a circular prohibiting use of these virtual currencies.
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Cryptocurrencies are “a stateless digital currency” in which encryption techniques are used for trading and these ‘currencies’ operate independently of a Central bank like the RBI, “rendering it immune from government interference”.
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A Bench was informed by senior advocate appearing for the RBI that a committee has been set up by the Centre to deal with issues relating to cryptocurrencies.
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Petitioner in his plea has sought a direction to the Centre to take steps to restrain sale and purchase of illegal cryptocurrencies like Bitcoins, which were being traded openly for “illegal activities” like funding terrorism and insurgency.