Reiterating its long-standing opposition to cryptocurrency legalization, the Reserve Bank of India (RBI) told the Parliamentary Standing Committee on Finance that virtual digital assets (VDAs), like Bitcoin [BTC] and other cryptocurrencies, pose serious risks to India.

The RBI asserts that because crypto assets function outside the established banking system and are therefore challenging to regulate and oversee, they have the potential to jeopardize financial stability.

The central bank also cautioned that since many trading platforms and service providers are based abroad and are unavailable to Indian regulators, cryptocurrencies can help with illegal activities like money laundering, narcotics trafficking, and financing…