India's Central Bank Sounds the Alarm (Again) on Bitcoin

The Reserve Bank of India (RBI) has issued a new warning on cryptocurrencies, the second time this year the central bank has done so.

AccessTimeIconDec 6, 2017 at 5:00 a.m. UTC
Updated Sep 13, 2021 at 7:14 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Reserve Bank of India (RBI) has issued a new warning on cryptocurrencies, the second time this year the central bank has done so.

In a short statement published on Dec. 5, the central bank expressed caution to "users, holders and traders" of cryptocurrencies, naming bitcoin in particular. It echoes remarks issued in February, a release that came several years after it first warned Indian citizens about the tech in late 2013.

As with those prior releases, RBI said that it had not moved to license any company in India to work with cryptocurrencies, stating:

"...RBI has clarified that it has not given any licence/authorization to any entity/company to operate such schemes or deal with bitcoin or any digital currency."

The new release, in a departure from the previous statements, includes a warning regarding initial coin offerings (ICOs) or token sales. It also highlights a "significant spurt" in the value of the overall cryptocurrency market.

"In the wake of [the] significant spurt in the valuation of many VCs and rapid growth in Initial Coin Offerings (ICOs), RBI reiterates the concerns conveyed in the earlier press releases," the central bank said.

The move also comes amid a period of uncertainty around cryptocurrency regulation in India. As reported last month, the Indian Supreme Court asked the government there to respond to a petition seeking clarity on the matter. Officials from several government agencies have been working on a regulatory framework for cryptocurrencies, but to date, no official policies have been made public.

RBI did not immediately respond to a request for comment regarding the new release.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.