The Reserve Bank of India (RBI) has directed all regulated entities including banks not to provide services to businesses dealing in virtual currencies (cryptocurrencies) like bitcoins. While the RBI has stopped short of banning cryptocurrencies entirely, this move will severely restrict consumers' ability to either purchase or sell cryptocurrencies like Bitcoins. According to the Central bank, the decision comes into effect immediately. Regulated entities which already are dealing with virtual currency shall exit the relationship within a specified time. RBI said that it will issue detailed guidelines in a separate circular soon. In a statement on various regulatory policies, the RBI conceded that "technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system." It goes on to say that cryptocurrencies "raise concerns of consumer protection, market integrity and money laundering, among others." What about those who have bought or dealt in cryptocurrencies? The RBI said it has "repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies." Banks had begun blocking cryptocurrency purchases Last month, HDFC Bank and Citi Bank had sent out notifications informing their customers that they have barred the use of their credit, debit and prepaid cards for the purchase or trade of cryptocurrencies like Bitcoins. The banks had noted that the step has been taken due to increasing global apprehensions and the RBI cautioning the public regarding the financial, legal and security-related risks associated with…
- Over 20 GAC orders sent to Meta and WhatsApp in October, show transparency reports December 7, 2023
- 28 crypto companies have registered with the Financial Intelligence Unit: Ministry of Finance says December 7, 2023
- Big Tech Companies’ Representatives Debate the varying approaches to AI regulation at Carnegie India Summit December 7, 2023
- New Mexico Sues Meta Over Child Safety Failings on Its Platforms December 7, 2023
- Government agencies demand push notification data from Apple, Google to spy on users: US Senator December 7, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...