If you have holdings in cryptocurrencies, in spite of Reserve Bank of India’s (RBI) warning in December and the government’s word of caution earlier this year, the latest RBI announcement may have worried you. Last week, the RBI clamped down on cryptocurrency-rupee trading in the country.
The RBI has given a three-month window to regulated entities such as banks and non-banking finance companies (NBFCs) to wind up existing relationships with firms or individuals dealing in cryptocurrencies. Speaking at a press conference on Thursday, RBI deputy governor B.P. Kanungo said virtual currencies can “adversely impact market integrity and capital control. And if they grow beyond a size, they can endanger financial stability as well.”
