Bitcoin surge, regulators bat for framework

A bitcoin rally to over Rs 10 lakh a piece, interspersed with stories of people making crores from thousands, has left regulators flummoxed amid fears that a lack of regulatory regime for such cryptocurrencies may give rise to 'e-ponzi' scams.

Financial sector watchdogs and government agencies will soon prepare a framework to safeguard investors and clamp down on fraudsters, who may try to manipulate regulatory gaps, an official said.

There are quite a few proposals on the table and those include applying to cryptocurrencies the existing regulations aimed at checking spread of ponzi schemes or illicit money-pooling activities, money laundering and black money generation and circulation, another official added.

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