RBI cites investor protection to justify cryptocurrency ban in India

The central bank has been arguing there's a security risk because the wallets are stored electronically where the currencies are kept

Investor protection is an important consideration behind banning trade in cryptocurrencies such as bitcoin and ripple in India, said the Reserve Bank of India (RBI) in a two-page response to the Internet and Mobile Association of India (IAMAI) last week.

The RBI’s response came almost a week after the Supreme Court of India heard a writ petition challenging the central bank’s decision to cut the banking system’s ties with cryptocurrency exchanges.

In its order by a Bench comprising the Chief Justice of India, the Supreme Court had asked the central bank to respond to the petition within a week and give a