India prohibits state institutions from working with cryptocurrencies

India prohibits state institutions from working with cryptocurrencies

Residents of India cannot buy cryptocurrencies through their bank accounts any more. RBI explains this by security measures amplification.

According to Quarz India, on April 5 2018 the Reserve bank of India (RBI) prohibited RBI-regulated institutions to provide services to individuals and companies related to digital currencies such as bitcoin.

“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,” the RBI representatives said.

All institutions, including banks, are given no more than three months to break off the relationships with companies associated with cryptocurrencies. According to RBI, cryptocoins "raise concerns of consumer protection, market integrity and money laundering." RBI also noted that bitcoin and altcoins could endanger financial stability of the country.

At the same time, the central bank is considering the idea of creating its own cryptocurrency and has a positive attitude towards blockchain technology.

Bibhu Prasad Kanungo, the deputy governor of RBI, said that the local digital currency will be a supplement to traditional money.

Note, trading and the possession of digital money remain legal in India.

It must be noted, the Indian government has an extremely negative attitude to digital money. They have repeatedly stated the risks of working with tokens.


arrow-down arrow-sm arrow bitcoin bookmark calendar docs facebook fb-sq github instagram linkedin material medium my-world ok pdf reddit scroll search slack telegram-sq telegram twitter-sq twitter viber-sq vk-sq vk whatsapp-sq xls yt