InvestorQ : Some of my friends who returned from abroad are looking to buy crypto currencies like Bitcoin and others. Are these banned in India?
rhea Babu made post

Some of my friends who returned from abroad are looking to buy crypto currencies like Bitcoin and others. Are these banned in India?

Answer
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8 months ago


There is a bit of confusion on this subject. The former finance minister, the late Mr. Arun Jaitley, had said in the course of one of his budget speeches that Indians are advised to stay away from crypto currencies like Bitcoin. However, Jaitley had also added that they were open to the usage of Blockchain technology which is the underlying technology for Bitcoins. However, now the RBI has clearly stated that it had never banned crypto currencies like Bitcoin and others and had only tried to ring-fence regulated entities from the associated risks implicit in such instruments. Regulated entities include all capital market players like banks, insurers, brokers, DPs, investment managers etc.

In response to a petition filed on the said subject by the by the Internet and Mobile Association of India (IAMAI), RBI clarified that it was not averse to technological innovation but wanted to just ensure that regulated entities like banks which are systemically important to be ring-fenced from risks like terror financing and money laundering through crypto currencies. However, the definition and the restrictions are still too broad and spread out to facilitate such transactions. You will to undertake these crypto transactions with a lot of caution.