RBI prohibits regulated entities from dealing in Virtual Currencies

RBI prohibits regulated entities from dealing in Virtual Currencies

April 12, 2018 CORP, Industries, states 0

The Reserve Bank of India (“RBI”) has, vide a notification dated 6th April, 2018, prohibitted all entities, regulated by the RBI, from dealing in Virtual Currencies (“VCs”) or providing services for facilitating any person or entity in dealing with or settling VCs.

The RBI clarified that such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase / sale of VCs.

The RBI also instructed the regulated entities, which are already providing such services, to exit such relationship within three months from the date of this circular.

Background:

The RBI had repeatedly, through its public notices on 24th December, 2013, 1st February, 2017 and 5th December, 2017, cautioned users, holders and traders of VCs, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In this regard, the RBI issued the above instructions.

Please refer to the hyperlinked source below for further details.

Source: Reserve Bank of India

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