The Reserve Bank of India has virtually banned cryptocurrencies by barring regulated entities from providing services to any individual or business dealing in digital currencies.
Indian residents can no longer purchase cryptocurrency through their bank accounts. And those who already are dealing with virtual currency shall exit the relationship within a specified time.
"In view of the associated risks, 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 (virtual currencies),” the bank said in a statement.
According to the Central bank policy, the decision comes into effect immediately.
India-based cryptocurrency trading volume had already decreased by 90% in recent months as banks themselves had already begun to restrict the ability of cryptocurrency exchanges.
Until now, this blockade had not been codified into official government policy.
By Ksenia Batanova