With an increase in popularity as well as exchange rates of Bitcoin, more and more regulatory agencies in various countries have started keeping an eye on Bitcoin to understand the role it is playing in their country’s economy and to form regulations for govern the entire ecosystem surrounding the virtual currency.
Just last week a US Judge ruled that Bitcoin was a legitimate form of currency. Reports also revealed that agencies in the US will be carrying out investigations to understand the use of Bitcoin, it working following which they will be providing an effective regulatory framework. Thailand went about declaring the virtual currency illegal in late July and suspended Bitcoin related trading indefinitely up until regulations were formulated to take care of this form of currency.
India has also taken a note of the virtual currency and India’s banking regulator is keeping a close watch on Bitcoin but, it doesn’t have any plans to regulate the currency yet. The Reserve Bank of Indian had also earlier acknowledged the fact that use of virtual currencies poses regulatory, operational as well as legal risks.
The US authorities, in June, were examining the use of Bitcoin and other virtual currencies with a fear that Americans might be using virtual currencies to evade taxes. Congress wants a complete investigation of the role of Bitcoin in the economy and the US Homeland Security Committee is also requesting for information and details regarding virtual currencies and their plans and strategies. The New York Department of Financial Services too is opening an investigation into the working of Bitcoin.