RBI lets banks do their due diligence for virtual currencies

RBI said that banks and other entities can continue to carry out customer due diligence processes in line with regulations governing standards for KYC, AML, CFT, etc for customers dealing in virtual currencies. Local crypto exchanges appreciate the bank’s clarification on this and hope that this circular encourages banks to update their compliance teams and provide banking access to Indian crypto exchanges.

According to BFSI, several media reports had cited that the central bank had informally asked the regulated entities to caution their customers against dealing in virtual currencies by the RBI’s 2018 circular.