Believe it or not, the Reserve Bank of India (RBI) has barred Indian banks from serving Bitcoins & cryptocurrency exchanges.
What It Means ??
RBI has asked its own regulated entities (such as banks) to stop providing service to individuals or business entities dealing in cryptocurrencies for fiat (INR) on and off-ramps. Which means, you may not be able to buy/sell cryptocurrencies for INR through banks.
Here, I want to discuss the implications of the step by the Indian government and also how the scenario might play out in the coming days/weeks as well as long-term.
We acknowledge that the issue of Bitcoin and cryptocurrency regulation has been a persistent and painful problem due to its decentralized nature. Also, we empathize with the fact that government has done this to protect Indian consumers who are rather ignorant and often lack sufficient education.
But when a government does something like this, it kills the curiosity of the techie and hinders his indulgence in the technology.
India is not a new candidate in the list of countries banning Bitcoin or other cryptocurrencies. It is, in fact, the 8th country to do so.
The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.
Digital currency operators in India await the July deadline to act on it. While a number of exchanges have left the country and others plan to do so, there are a few platforms that are launching crypto-to-crypto trade, which is RBI-compliant.
Still waiting for the final hearing. Lets see what indian fate lays upon!!
