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Indian central bank: Cryptocurrency is not banned in the country

  • The Reserve Bank of India (RBI) has stated that though there’s no ban, regulated entities cannot offer crypto assets in India.
  • In April 2018, the bank had issued a statement limiting its services to anyone participating in cryptocurrency usage.

The Reserve Bank of India (RBI) has clarified that regulated entities cannot offer crypto assets in India, but this does not mean there’s an overall digital asset ban. Recently, The Economic Times of India cited a document that the central bank had submitted to the nation’s Supreme Court back in September.

The document reads:

Firstly, the RBI has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs.

In April 2018, the RBI had issued a statement limiting its services to anyone participating in cryptocurrency usage. The statement said:

In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs.

According to an earlier Cointelegraph report, following the bank’s statement, the Internet and Mobile Association of India (IAMAI) petitioned for a reversal of the crypto-related regulation. IAMAI is a non-profit group dedicated to digital growth. 


 

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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