India, country's central bank says it has not banned the use of crypto

After a statement that had a major impact on India's cryptocurrency market, the country's central bank says it has not banned the use of crypto

The Supreme Court of India met this week with the country's central bank to clarify why the bank imposed a ban on India's cryptocurrency market in August 2018.

The meeting is in response to a petition filed by the Internet and Mobile Association of India (IAMAI), a nonprofit body that is defending the companies affected by the Reserve Bank of India (RBI) statement.

At the time, the country's central bank said that entities regulated by the RBI should not “provide services to any individual or commercial entity” that deals with or settles cryptocurrencies.

Among the risks highlighted by the central bank are financing terrorism and money laundering through cryptocurrencies.

“All possible avenues that facilitate the anonymous transfer of cross-border funds need to be dealt with quickly and rigorously. It is an admitted fact that VCs (virtual currencies) were used to buy illegal and illicit goods, ranging from weapons and ammunition to drugs, ”said the RBI in its testimony, in response to IAMAI.