RBI has cautioned against the use of cryptocurrencies multiple times.
The exchange between virtual digital assets and fiat currencies, the exchange between one or more forms of virtual digital assets, and the transfer of digital assets will be covered under money laundering laws, the notification said.
The Reserve Bank of India has said that cryptocurrencies should be banned as they are akin to a Ponzi scheme.
Extending India's money laundering rules to cryptocurrencies will give authorities greater authority in monitoring the transfer of these assets beyond the country's borders.
Source: NDTV