Following in China’s lead, India’s banking regulator warned users of security and financial risks associated with virtual currency. The Reserve Bank of India (RBI) Had the following to say:

“There have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities in several jurisdictions. The absence of information of counterparties in such peer-to-peer anonymous/ pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws”

Read more at TechCrunch:

Bitcoin Exchanges In India Shut Down After Regulator WarningBitcoin exchanges in India are shutting down days after the country’s banking regulator warned users of virtual currency against security and financial risks associated with them. The Reserve Bank of India (RBI) had remained silent on Bitcoin over the past few weeks, even as China started clamping down on the exchanges, sending the virtual currency into a downward spin earlier this month.

via TechCrunch