With the release of its first monetary policy for the financial year, India’s central bank (RBI) has banned trading on virtual/crypto currency throughout the country.
In a statement explaining its position on the matter, the RBI warned of other potential hazards:
“virtual currencies, also variously referred to as cryptocurrencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.
In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the RBI shall not deal with or provide services to any individual or business entities dealing with or settling virtual currencies.”
Since crypto traders in India account for 1 in every 10 Bitcoin transactions worldwide, this announcement caused prices of Bitcoin and numerous other currencies to fall sharply according to Business Standard report.