As per RBI,Crypto Currencies Encourage Illegal Dealing.

◆Pointing out that transaction with crypto currency could “encourage illegal transactions” in the country, the RBI has told the Supreme Court that a committee has been set up by the Centre to go into its eventual validity.
◆We have already issued a circular prohibiting use of these virtual currencies”, senior advocate Shyam Divan who appeared for the RBI told a bench of chief justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud on Friday.

◆Bitcoin is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties. “It is submitted that money used to buy Bitcoin (crypto money) from foreign locations .