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.

Dec 6, 2017 at 5:00 a.m. UTC
Updated Sep 13, 2021 at 7:14 a.m. UTC

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.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Huobi Acquires Latin American Crypto Exchange Bitex

The Chinese crypto exchange is seeking to expand in Latin America, but Bitex will continue to operate under the same name and with its current management team.

The Chinese crypto exchange is seeking to expand in Latin America, but Bitex will continue to operate under the same name and with its current management team.

CoinDesk - Unknown
2
CoinDesk - Unknown
What's the Crypto 'Travel Rule,' and What Does It Mean for You?

The measure is essential to prevent bad actors from using digital assets to launder money. It affects everyone who dabbles in cryptocurrencies from exchanges to everyday investors.

The measure is essential to prevent bad actors from using digital assets to launder money. It affects everyone who dabbles in cryptocurrencies from exchanges to everyday investors.

CoinDesk - Unknown
3
CoinDesk - Unknown
Top Latin American Crypto Exchange Bitso Lays Off 80 Employees

The company, which had more than 700 workers before the cuts, counts four million users in the region.

The company, which had more than 700 workers before the cuts, counts four million users in the region.

CoinDesk - Unknown
4
CoinDesk - Unknown
SuperRare in SoHo: NFTs in the Real World

Visions from Remembered Futures is leaping into the metaverse and simultaneously out into the real world.

Visions from Remembered Futures is leaping into the metaverse and simultaneously out into the real world.

CoinDesk - Unknown