After a stressful Supreme Court hearing, India conceded that bitcoin and crypto assets are not illegal. The Reserve Bank of India, the country’s central bank, also stated it did not place restrictions on Bitcoin (BTC) or other virtual currencies.
RBI Denies Banning Bitcoin and Crypto Outright, but Banks Face Restrictions
The RBI put in place ring-fence regulations, to protect banks and institutions from the risks related to trading bitcoin and other crypto assets, reported the Economic Times of India. The central bank has also restricted banks from dealing in bitcoin and crypto, due to concerns for terrorism financing. The wider public is not restricted from trading, or using digital assets in a peer-to-peer fashion.
The central bank, however, has expressed concerns about the effects of digital assets, without going for an outright ban. This made the Internet and Mobile Association of India (IAMAI) to protest before the Supreme Court, based on an RBI circular distributed in 2018.
The bank explained that it did not ban all…