The Reserve Bank of India (RBI) banned regulated banks from making transactions related to trading in cryptocurrencies.
The country’s banks no longer have to provide the services of purchasing cryptocurrencies and serve companies associated with trading in virtual currencies. This decision was not spontaneous, the country’s central bank repeatedly warned banks, companies and users about the risks associated with the use of virtual currencies, according to Сointelegraph.
The Indian Ministry of Finance criticized Bitcoin and other cryptocurrencies for their “lack of intrinsic value” in January of this year, and this month several large Indian banks have limited the functionality of cryptocurrency exchange accounts.
The statement of the Central Bank of India claimed:
“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”.
RBI, like the Ministry of Finance of the country, does not recognize cryptocurrency as the legal means of payment in the territory of India. This sphere is not regulated in the country on the legislative level.