Bitcoin is once again feeling the squeeze from government regulators. This time, the crunch comes in India, where multiple online exchanges have suspended operations following a warning against the digital currency from the country's central bank and, according to a local report, authorities have raided the home of the man who oversaw the largest of these exchanges.

Coming little more than a week after the Chinese government launched its own crackdown on Bitcoin exchanges, the news bathes the world's most popular digital currency in an unflattering light, but these are the expected growing pains for a technology that is still less than five years old.

As first reported by The Hindu, India's largest Bitcoin exchange, BuySellBitCo.in, a site where you could trade the popular digital currency for government monies, shut down on Thursday, two days after the Reserve Bank of India issued a public advisory detailing the risks of using Bitcoin and other digital currencies. Soon, other exchanges, such as INBRTC, followed suit.

"We are suspending buy and sell operations until we can outline a clearer framework with which to work," reads a notice on the BuySellBitCo.in site. "This is being done to protect the interest of our customer."

Following the shutdown, another local news outlet, DNA India, reported that the local Enforcement Directorate, or ED, had raided the home of BuySellBitCo.in operator Mahim Gupta in Ahmedabad. According to the story, the site may have violated local banking regulations by transmitting money across borders.

Though Bitcoin exchanges have thrived in some countries, they've had a tough time in others after failing to conform with the letter of the law. Most notably, the Tokyo-based Mt. Gox – traditionally the largest of the Bitcoin exchanges – has had a rough ride over past year, with the U.S. government seizing $5 million from its bank accounts, claiming it was operating a money transmission business without properly registering with federal and state authorities. Since then, the company has had trouble moving money to its customers here in the U.S.

The trouble is that so many Bitcoin operations are run by people with more expertise in computing than finance. But a new wave of Bitcoiners are now building businesses on firmer footing.