Reserve Bank of India Bans All Indian Banks and FIs From Handling Cryptocurrency

The Reserve Bank of India (RBI) strikes cryptocurrency again. This time India’s central bank issued a statement today banning all entities that fall under its regulation, from dealing with any cryptocurrencies.

Since RBI is India’s central bank that means all the country’s banks and FIs fall under RBI’s authority.

Today’s statement read:

Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.

Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. 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. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately.

RBI has a long-standing distaste for all cryptocurrencies, including the best-known bitcoin. It released its first warning to investors against crypto in 2013, according to a CoinDesk article.

Of course, India is not the only country whose authorities have released repeated cautions and warnings against the phenomenon. Many others, including the U.S. authorities, have cautioned investors on potential dangers of dealing with cryptocurrency.

Read more at Reservebankofindia.org and CNBC.