Noose on cryptocurrency exchanges tightens as RoC stops registration

In a move that makes registration of virtual currency exchanges a stringent affair, the Registrar of Companies (RoC) has stopped registering cryptocurrency exchanges under the Companies Act, 2013, according to a report by Business Standard.

The report suggests that the RoC, which works under the Ministry of Corporate Affairs, has in certain cases, asked for an undertaking from software development or information technology companies that it will not deal with cryptocurrencies.

"I tried to register my company in December, but the RoC didn't accept my request. The company's name had the term 'bitcoin' and the RoC said it wouldn't support it," an executive with an upcoming cryptocurrency exchange told the newspaper.

Cryptocurrency exchanges are platforms for buying and selling of virtual currencies such as Bitcoin. Around USD 100 billion worth of transactions are carried out on such exchanges on an average every month.

Earlier, the government had issued a warning against investing in cryptocurrency. The Reserve Bank of India (RBI) had issued a similar warning earlier advising Indian investors to stay away from the rising digital currency craze.