Indian court affirms ruling banning bank dealings in virtual currencies

The regulator gave banks three months to cease all crypto operations.

Bloomberg reports that India’s top court has affirmed a ruling by the central bank banning lenders and other regulated institutions from dealing in cryptocurrencies.

A bench headed by Chief Justice Dipak Misra affirmed a Reserve Bank of India (RBI) directive giving banks three months to cease all crypto operations.

The central bank maintained that bitcoins cannot be treated as currency under existing laws in a move that cuts off digital coins as a possible avenue for criminal activity. However, proponents for virtual currencies suggest that clearer regulatory frameworks are necessary to dampen market speculation and ensure pricing stability.

The move runs parallel with South Korea and Abu Dhabi who are laying out rules for more secure crypto trading. Thailand is also in the process of developing its own digital currency for interbank transactions.

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