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The Reserve Bank of India has banned dealings with Virtual Currencies

The Reserve Bank of India (RBI) has banned virtual currencies or the same related entities regulated by it from dealing with or handling services to any individual or business entities dealing. Regulated entities which already provide such services have been told to exit the relationship within a specified time.

The Reserve Bank has repeatedly warned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks and the related problems associated with dealing with such virtual currencies.

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However, “virtual currencies, also variously referred to as cryptocurrencies and crypto assets, raise concerns of consumer protection, market integrity, and money laundering, among others,” the RBI said in its statement on developmental and regulatory policies released on Thursday.

 

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