“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,” RBI said.

RBI Effectively Bans Bitcoin

The RBI (Reserve Bank of India) has effectively banned bitcoin and all other virtual assets in India.

In the same statement, RBI said: “Virtual currencies (VCs), also variously referred to as cryptocurrencies and cryptoassets, raise concerns of consumer protection, market integrity and money laundering, among others.”

RBI highlighted that it had repeatedly cautioned investors about the risks involved in dealing with virtual assets like Bitcoin, Ethereum, and various other cryptocurrencies.

The RBI has said that all entities regulated by RBI that provide services in this domain will exit the relationship within a specified period. The period for the same, it seems, will be specified in another circular that will come out soon.