The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

RBI Confirms: No Ban on Crypto In India

4 min reading

The Indian Central Bank has confirmed that there is no ban on cryptocurrencies in India. The central bank explained that all it does is separating the entities (like banks) it regulates from the risks associated with trading cryptocurrencies.

RBI has not banned cryptocurrencies

During a last week's hearing in the Supreme Court of India, the adviser of the Internet and Mobile Association of India (IAMAI), Ashim Sood, read the answers given by the Indian Central Bank, that is by the Reserve Bank of India (RBI). In August last year, the Supreme Court ordered the central bank to answer every point of the statement made by cryptographic exchanges in the case of banking restrictions imposed by the bank on the cryptographic industry.

The RBI clearly states in its response to IAMAI that it has not put a ban on virtual currencies in the country. In April 2018, while issuing a circular, the central bank instructed entities it regulates to stop providing services to persons or entities trading or settling cryptocurrencies.

As The Economic Times reports, cryptocurrencies are not banned by either the central bank or by the Indian government.

"The Reserve Bank of India has said it had not banned cryptocurrencies such as bitcoin in India, but only ringfenced regulated entities like banks from risks associated with trading of such virtual instruments."

RBI: cryptocurrencies are used for illegal activities

The central bank justified its banking restrictions by claiming that cryptographic activities pose not only a reputational and financial risk but also risks legal and operational.

"It is an admitted fact that VCs [virtual currencies] have been used to purchase illegal and illicit goods ranging from guns and ammunition to drugs."

- wrote RBI in its statement.

According to The Economic Times, RBI has previously advocated banning ICO, and argued that funds investing in cryptocurrencies should not be allowed to operate in India. What is more, the central bank proposed to amend the Foreign Exchange Management Act in order to both prevent and track money transfers in the case of investments in virtual currencies.

Supreme Court hearing on ending banking restrictions

After the RBI's circular (April 2018), banks closed their cryptographic exchange accounts as a consequence of which some of the exchanges were forced to quit. A number of cryptographic stakeholders immediately petitioned for bank restrictions which resulted in the restrictions being now considered by the Supreme Court. Last week, the Supreme Court resumed its consideration of the case. During the three days of hearings, extensive arguments were presented in an attempt to convince the court to provide assistance. The victims claim that by closing the bank accounts of cryptographic exchanges, the central bank has, in fact, banned cryptographic activities.

The Indian government, on the other hand, is still considering a bill which is supposed to ban cryptocurrencies (with an exception of those issued by the state). The project of the bill was not introduced to the parliament, even though the government announced that it would be introduced by the end of last year. A delay like that gave the Indian cryptographic community hope that the government could decide to regulate the cryptographic industry instead of joining the abovementioned bill.

Currency Exchange rate Buy cryptocurrency

Buy crypto now

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.