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The Indian Central Bank reconfirms concerns about crypto trading

Updated: Jul 25, 2024
Published: Jun 4, 2021
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The Reserve Bank of India repeated its concerns about cryptocurrencies and clarified its position on digital assets just days after instructing banks to lift the 2018 trading ban.

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Banks must continue with routine due diligence measures on the transactions

RBI Governor Shaktikanta Das told reporters during an online press conference following the release of the monetary policy statement. “We have significant concerns about cryptocurrency, which we have communicated to the government.”

Das' statements come less than a week after the central bank instructed lenders, who are required to facilitate crypto trades, not to cite the 2018 trading ban as a reason to prohibit such transactions. The order, which has since been struck down by the Supreme Court, cannot be cited or quoted from, according to the statement, but banks must continue with other routine due diligence measures on the transactions.

Not the first time the central bank has expressed their concerns

On several occasions, the central bank has expressed concern about digital currencies, citing issues such as money laundering and terrorism financing. The regulator prohibited banks and other regulated entities from supporting cryptocurrency transactions about three years ago, but the Supreme Court overturned that prohibition last year.

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