The Reserve Bank of India has forbidden regulated organizations to provide services to any private person or company whose activities are related to cryptocurrencies. This is reported by Bloomberg Quint.
The central bank gives such organizations, including banks, 3 months to break off relations with cryptocurrency companies, said the deputy head of RBI Bibhu Prasad Kanungo.
Thus, the last decision of the regulator is aimed at undermining the infrastructure that serves traders and other members of the market The possession and trading of cryptocurrencies is not currently a violation of the law.
At the same time, the regulator intends to support the blockchain based solution development for financial market to increase transparency.
Despite the ban imposed, RBI supports the idea of issuing state crypto-currency.
These are issued by the central bank and are considered the liability of the central bank. They will be in circulation in addition to the paper currency that we have. It also holds the promise of reducing the cost of printing notes.
Deputy Governor, RBI
The Reserve Bank of India has set up a special committee, which is studying the possibility of issuing state cryptocurrency.