Govt panel recommends shutting down cryptocurrency dealers in India

A Bitcoin (virtual currency) coin is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/Illustration - RTS18BQW

A government panel has recommended shutting down cryptocurrency dealers in India in a move to restrict the use of virtual currencies in the country, reports The Economic Times.

According to the report, the decision came after the digital currency Bitcoin hit record highs when CME Group, operator of the world’s largest futures and options exchange, announced the launch of Bitcoin futures by the year-end.

The digital currency hit a new all-time high of USD 7,067.54 on Thursday, as per CoinDesk’s Bitcoin Price Index valuing it at USD 118 billion. Bitcoin has gained more than 600 percent (USD 6,000) since the start of the year, up from USD 968 on December 31, 2016.

Legendary stock investor and billionaire Warren Buffett recently said that digital currency is in bubble territory, a concern shared by Saudi billionaire Prince Alwaleed and Kenneth Rogoff, professor of economics and public policy at Harvard University.

The present price of Bitcoin in India is at Rs 4.9 lakh.

Hesham Rehman, CEO & co-founder of Bitxoxo, was quoted as saying that instead of shutting down cryptocurrencies dealers, the government must take steps to curb buying and selling of bitcoins or cryptocurrencies in cash.

There has been speculation of late that the Indian government may introduce its own virtual currency.