India's Central Bank Says it Did not Ban Cryptocurrencies
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Jan. 21, 2020
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The Reserve Bank of India (RBI), the country's central bank, has said it never banned cryptocurrencies in the country, Finance Magnates reports.

In particular, the RBI has said in a response to a petition from the Internet and Mobile Association of India (IAMAI) "it has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs."

According to the central bank, it ordered banks to not provide their services to crypto-related persons or entities in order to avoid the risks of money laundering and terror financing associated to this new industry.

The Reserve Bank of India banned financial institutions from offering their services to crypto-related companies in April 2018.

As a result of the ban, many cryptocurrency exchanges, including Koinex and Zebpay, were forced to cease their operations in the country as they were unable to find any bank willing to service them.

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