Bitcoin

Pressure from Reserve Bank of India Drives Some Bitcoin Businesses Under

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Crummy news on the Bitcoin beat out of India, via NDTV Gadgets:

A number of Bitcoin operators in India have begun suspending their business following RBI's warning against use of such virtual currencies due to potential money laundering and cyber-security risks.

While RBI is yet to come out with a clear regulatory framework for Bitcoins, which have been gaining currency across the world over the past few months, it has issued an advisory cautioning general public against use of Bitcoins and other virtual currencies—notably, no ban.

Within days of this advisory issued on December 24, a number of entities offering Bitcoin services have suspended their operations, temporarily or indefinitely, while websites of a few others have gone down.

As I wrote back in May, while aspects of the Bitcoin protocol make its destruction by government or central banks unlikely, their pressure can sure make it more difficult for people to conduct Bitcoin related businesses.