The Reserve Bank of India has said that it has not given any licence or authorization to any entity or company to operate virtual currency schemes or deal with bitcoin or any virtual currency. “Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk,” said RBI in a release on its website.
Remember that bitcoins or any other virtual currency is not regulated in India. Besides regulatory concerns, there have been cases of fraud as well in other countries.
Moreover, bitcoin prices have been volatile. In September 2016, one bitcoin was worth Rs.40,000. On 2 February, it was Rs.70,000.