In Reserve Bank of India (RBI) they have claimed that the regulator has not banned cryptocurrencies, in fact. Thereby, RBI has stressed that established ban on servicing cryptocurrency business by financial institutions of the country is aimed to protect companies from risks related to digital assets trading — investment resource has learned.
The position of RBI was announced during the judicial trial with nonprofit organization Internet & Mobile Association of India (IAMAI). The company appealed to the Supreme Court against the Reserve Bank.
Representatives of IAMAI have stated that, since there is no low banning cryptocurrencies trading, it is legal commercial activity. Although, the regulator actually banned trading of digital assets, blocking access to banking services.
Despite that RBI has claimed that, in fact, digital currencies are not banned in India, they explain their actions as protection financial companies from risks, including financing of terrorism and money laundering with the help of cryptocurrencies.
In addition, you may learn a lot of interesting and useful information about Bitcoin & other cryptocurrencies in India from the article “Bitcoin in India – Regulation, Purchasing, Investing”.