Finance ministry drafting rules for Bitcoin, other virtual currencies

Cases of misuse of virtual currencies are rising as fast as their prices are

The Union finance ministry is in the process of preparing norms for cryptocurrencies or virtual currencies, such as Bitcoin.

The move has been impelled by the latter’s rising market size and investor base, apart from reports of related fraud. Ministry officials said comments would be invited from the public on the proposed rules. “The government feels the industry needs some government oversight and can’t be left unregulated. A panel of bureaucrats will soon submit their recommendations on the subject,” said an official. 

The panel is unlikely to recommend a ban on digital currencies. The global market capitalisation for virtual currencies is about