July 17 2017
The government is mulling the use of KYC (know your customer) norms and a framework for cross border transfer for cryptocurrency transactions, which will address the issues arising out of foreign exchange regulation. The use of cryptocurrency such as bitcoins amounts to a violation of extant provisions of foreign exchange regulation, as conversion of flat currency into bitcoins facilitates the conversion of such currencies into foreign exchange without the intervention of the Central Bank, the department of economic affairs, under the ministry of finance, said in a note.