NEW DELHI: RBI on Thursday made its stand over legalising cryptocurrency clear, amid fears that it can be a source of financing for crimes with transnational dimensions like drug trade and terrorism, persons familiar with the deliberations said after the central bank briefed a Parliamentary committee on virtual digital assets (VDAs).A lawmaker said RBI also emphasised that VDAs are difficult to regulate, adding that there is a strong view that cryptocurrency can especially pose big problems for an emerging economy like India. Even a more developed economy like China has banned crypto, he said.Asked if RBI is for legalising cryptocurrency, the standing committee on finance chairman Bhrtruhari Mahtab said, “No”. RBI is also of the view that tracking offshore entities involved in VDA trade poses a serious challenge for regulatory authorities, sources added. The central bank is a strong opponent to legalising crypto assets and has publicly stated its opposition. Thursday’s assertion is seen to be a firm no from governor Sanjay Malhotra, amid strong lobby seeking legitimacy for VDAs.In contrast to RBI, the Institute of Chartered Accountants of India (ICAI) said VDAs present a set of strategic opportunities for India, if aligned with the country’s strengths in digital infrastructure, fintech innovation, and global services leadership. It called for a comprehensive VDA Law providing guidance on issuance, trading and custody that attracts institutional participants and strengthens investor protection, sources said.“VDAs can significantly enhance India’s position in cross-border payments and remittances. Leveraging blockchain-based systems and stablecoins, India can enable faster, lower- cost, and more transparent cross-border transactions, complementing existing digital payment systems such as UPI,” it is believed to have said. This can strengthen India’s role as a global hub for efficient payment infrastructure, it added.With a strong base of software talent and startups, India can drive development in areas such as blockchain applications, decentralised finance tech, and smart contract platforms, sources privy to ICAI’s view said.