India’s central bank, RBI, says it banned regulated crypto offerings, not overall cryptocurrency usage in the country.
The Reserve Bank of India (RBI) said regulated entities cannot offer crypto assets in the country, but that does not equate to an overall digital asset ban.
In a Jan. 21 article, The Economic Times of India cited a document the RBI submitted to the country’s supreme court in September, which said:
“Firstly, the RBI 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”
India ban drama
“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.”
Pushback against the ban
After the RBI’s statement, the Internet and Mobile Association of India (IAMAI), a non-profit group dedicated to digital growth, petitioned for a reversal of the crypto-related regulation, Cointelegraph reported in July 2018.
On Jan. 19, 2020, Cointelegraph reported on a recent Indian Supreme Court hearing, citing Jan. 21 as the expected date on which RBI will provide further clarity on the situation.