Central Bank of India said that there is no ban on cryptocurrency in the country

The Reserve Bank of India (RBI) has said that it has not banned cryptocurrencies like Bitcoin in India, but is only protectingregulated companies, such as banks, from the risks associated with trading virtual instruments, according to the Economic Times.

Such a statement was made in response to the petition,filed by the Internet and Mobile Communications Association of India (IAMAI), which stated the need to revise the RBI order issued in April 2018 for regulated entities of the Indian financial market with a direct ban on cryptocurrencies.

IAMAI Association of Memberscryptocurrency exchanges, appealed to the Supreme Court against RBI. At a hearing earlier this month, the association claimed that trading cryptocurrencies in the absence of a law prohibiting them was legitimate commercial activity. However, the RBI actually banned it by blocking access to banking channels. The next hearing is scheduled for Tuesday, January 21.

“Firstly, RBI does not prohibit VC (virtualcurrency) in the country. RBI instructed regulated organizations not to provide services to those individuals or organizations involved in VC ... RBI has the right to protect its regulated organizations from participation in activities that create reputation and financial risks along with other legal and operational risks ”, The RBI statement said.

Risks noted by the central bank included financing of terrorism and money laundering using cryptocurrencies.

"Any possible ways that contributeAnonymous transfer of funds across the border should be promptly and strictly controlled. It’s a universally recognized fact that virtual currencies were used to purchase illegal and illegal goods, from weapons and ammunition to drugs. ”“, RBI says in response to IAMAI’s objections.

The Central Bank also stated that it is not against technological innovation and encourages "the development and implementation of distributed ledger technology, also called blockchain technology."

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