InvestorQ : Has the Reserve Bank of India laid out any guidelines on virtual currencies?
Anjali Desai made post

Has the Reserve Bank of India laid out any guidelines on virtual currencies?

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simran Kaur answered.
2 years ago
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Currently, there are no guidelines on virtual currencies either by the Reserve Bank of India or the government. However, both these institutions have time and again warned against the use of cryptocurrencies.

In December 2017, the finance ministry said that virtual currencies are neither currencies nor coins and are not authorized by the RBI and the government as a medium of exchange. These do not have any regulatory permission or protection in India.

“The virtual currencies don’t have any intrinsic value and are not backed by any kind of assets. The prices of bitcoin and other virtual currencies, therefore, are entirely a matter of mere speculation. There is a real and heightened risk of an investment bubble of the type seen in ponzi schemes that can result in a sudden and prolonged crash," the finance ministry had said in a statement.

Last year, the central bank prohibited regulated entities, including commercial banks, payments banks and small finance banks from dealing with or providing services to facilitate trade in virtual currencies.

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