RBI: We did not ban virtual currencies, but just ringfenced the banks

The Reserve Bank of India has said in a court filing that it had “ringfenced” financial institutions from dealing with digital assets over perceived risks, but hadn’t banned cryptos. “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. … The RBI has been able to ringfence the entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks.” The use of cryptos in illicit finance was specifically listed as a concern, with the RBI saying that means of anonymous cross-border transactions “have to be acted upon swiftly and stringently dealt with.”

https://www.coindesk.com/indias-central-bank-explains-why-it-blocked-banks-from-using-cryptos-in-court-filing

The Reserve Bank of India has said in a court filing that it had “ringfenced” financial institutions from dealing with digital assets over perceived risks, but hadn’t banned cryptos.

“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. … The RBI has been able to ringfence the entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks.”

The use of cryptos in illicit finance was specifically listed as a concern, with the RBI saying that means of anonymous cross-border transactions “have to be acted upon swiftly and stringently dealt with.”

Sign Up for NextBigWhat Newsletter

Daily.

You May Also Like

Spotted: Mysterious Flying Object Near ISRO

Shepherds sighted a flying object over Indian Space Research Organization’s (ISRO) Mahendragiri centre and its neighbouring forest areas. The incident took place on Monday but it has been denied by the ISRO officials. The incident is still being looked into by police and forest departments’ officials.