However, experts and regulatory officials feel different virtual currencies expose users to unintended risks and also losses arising out of scams perpetrated by cyber criminals looking to make a quick buck.

Illegal drug cartels and those indulging in money laundering activities are said to be increasingly opting to transact through virtual currencies due to anonymous, low transaction cost and difficult to trace nature of environment.

While most platforms require users to upload images of government photo IDs (passport, driver's licence etc), proof of address documents (utility bill, vehicle registration etc) as well as online banking account details, the under-ground market is teeming with unscrupulous operators.

After suspending their operations for a few weeks amid growing regulatory glare, many bitcoin operators have cautiously resumed courting business from their clients and some new players have also come to fore in India.

At the same time, many bitcoin operators and even some corporate houses have recently stepped up their lobbying for a clear regulatory framework on digital currencies in India.
READMORE:
9 Indians Who Reformed The Tech Concepts Of Silicon Valley
10 Coolest Things You Can Do With Linux