No systemic risk due to bitcoins as yet: Tyagi 

No systemic risk due to bitcoins as yet: Tyagi 

Context

Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi said that while bitcoins could not be ignored, the cryptocurrency had so far not posed any systemic risk and the government has formed a panel to look into it.

Panel looking into virtual currency

• Regulators, both domestic and global, have been closely watching the swift surge in the price of the virtual currency
• Recently, the price of a bitcoin zoomed from $10,000 to more than $19,000 within a few days.
• On the issue of bitcoins, the government is looking into it in consultation with the RBI and the SEBI.
• The panel, also comprising finance and information technology ministries, is looking into what to do about it

RBI again issues warning

• Currently, bitcoins do not come under the purview of any regulator in India though the RBI, on December 5, issued its third warning to investors on concerns relating to investing in bitcoins, reiterating concerns conveyed earlier in December 2013 and February 2017.
• Last week, the I-Tdepartment had conducted surveys at many Indian start-ups that offer a platform to buy and sell bitcoins.

Should be no oversight on Blockchain

• Such start-ups have seen a significant rise in the number of Indian individuals wanting to trade in the virtual currency
• There should not be any regulatory oversight on blockchain technology, used to deal in cryptocurrencies such as bitcoin, ethereum and litecoin among others.