Flagging possible “black money” risks from virtual currencies such as Bitcoin, the RBI has told a parliamentary panel that they are “susceptible to misuse” by terrorists and fraudsters for laundering money.

The Reserve Bank further said it has not given any licence and authorisation to any entity or company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor or trader dealing with virtual currencies will be doing so at their own risk, the RBI said.