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India's RBI bans regulated entities from dealing in cryptocurrencies

Central bank mulls launching own virtual currency for banks to gain tighter control

Reserve Bank of India banned the transactions of cryptocurrencies by financial institutions.

MUMBAI -- The Reserve Bank of India on Thursday banned banks and other regulated financial entities from facilitating transactions in cryptocurrencies immediately, citing money laundering and consumer protection concerns.

The Reserve Bank's crackdown on cryptocurrencies follows warnings to individuals and businesses on the risks of trading these financial instruments. But it also said it was studying the feasibility of introducing its own digital currency soon to get a better understanding of issues around this instrument. The study is expected to be completed in June.

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