The Reserve Bank of India (RBI) has kept a wary stance toward cryptocurrencies, said Governor Shaktikanta Das during an online briefing.
“We have serious concerns about cryptocurrencies, which we have conveyed to the government,” Das noted.
In 2018 the regulator barred RBI-controlled institutions from providing services to individuals and firms related to digital currencies. Two years later the Indian Supreme Court overturned the directive, but some banks continued to cite RBI requirements.
In late May 2021 the central bank reminded financial institutions of the repeal of the ban. According to the RBI governor, the regulator was meant to provide clarity, but this should not be read as a change in the authorities’ stance.
Reuters had reported that India would consider a bill proposing a full ban on dealings with digital assets, which would entail criminal and administrative penalties.
In March authorities demanded that crypto-linked companies disclose their assets.
In May it emerged that the RBI has been pressuring banks, urging them to rethink their relationships with bitcoin exchanges and traders.