RBI has said that any entity regulated by it cannot provide services to any business dealing with cryptocurrency. I'm just going to give out the main points objectively. The situation isn't very good at the moemnt but let us not spread panic and FUD.
As per the latest release from RBI
Reserve Bank (central bank of India) has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately.
In simpler words RBI has fucked us over!
This will effectively stop:
- Purchase of Bitcoin/Alt coins via Indian exchanges with INR via bank a/c and payment gateways.
- Sale of cryptocurrency via Indian exchange for INR and receiving funds from these exchanges.
This doesn't affect, use of foreign cryptocurrency exchanges, decentralized exchanges or use of LocalBitcoins.com, and other uses of cryptocurrencies that doesn't directly deal with Fiat in anyway in India. I'm of the opinion that once the dust settles, cash transactions may boom.
If you are on Facebook then watch this video from CNBC TV18 which discusses the issue quite well.
https://www.facebook.com/cnbctv18india/videos/vb.169218193115587/1764877810216276/?type=3&theater
From my sources I've learnt that exchanges aren't notified officially and they are working to deal with this issue. If it comes to that there will be some time before everything winds down. We will have time to exit however, the prices might not be that great!
I saw some massive dips in price, live on our exchanges today in India. Users of Steemit from India, I will keep you updated as the situation becomes clearer.
This is a protectionist move from the government and I wish we had better people in power. Unfortunately, you and I are not the policy makers nor market movers. We are simply, small speculators who have to do anything to survive in this evolving market, and we will survive!
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