Announced today by the Economic Times in India, its country’s residents will no longer be able to purchase Bitcoin (available on Coinbase) (BTC) or any other cryptocurrencies via their bank. The Reserve Bank of India (RBI) has just put out its first bi-monthly monetary report which said that any entity that is regulated by them should not provide services to any individual or business buying or selling digital currencies.

Abizer Diwanji, Head of Financial Services at EY India, announced in a statement, “A person will not be able to transfer money from his savings account to his crypto wallet.” 

The RBI believes that technological innovations, including digital currencies, can improve the current financial system but are concerned with consumer safety and protection, money laundering, crime, and market integrity. In the overall view of these risks, the reserve has decided that these changes will be made into effect immediately.

The RBI issued a statement saying:

“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately”

Any entity that is regulated by the RBI must stop their services with any person or business that deals with virtual currencies.