The latest crypto news in India comes in where Reserve Bank of India (RBI) has banned them with immediate effect from “dealing with or providing services to any individuals or business entities dealing with or settling virtual currencies” Thus, the Indian Citizens wouldn’t be able to buy bitcoins or any other cryptocurrency with the help of banks or any e-wallets.
In its first bi-monthly monetary policy, The Reserve Bank of India (RBI) has announced that any entity regulated by them such as banks, wallets etc. are prohibited on grounds of dealing or providing services of any sorts to any individual or business entities for buying or selling of cryptocurrency such as bitcoins.
Thus means, the ban won’t allow individuals to transfer money from their bank accounts to their crypto-trading wallets.
RBI has been over time, warning holders and traders of virtual currencies, including Bitcoins, about the risks and threats associated in dealing with decentralized forms of currencies.
In its statement RBI said that technological innovations, including those underlying virtual currencies, like Blockchain, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as cryptocurrencies and crypto assets, are a matter of huge concerns in terms of consumer protection, market integrity and money laundering, just to name a few.
Keeping in mind all the risks these cryptocurrencies pose not just to individuals but the entire economy as a whole, entities regulated by RBI will not be rendering any services to individuals or companies for dealing with or settling VCs. In fact, regulated entities which already provide such services shall exit the relationship within a specified time.
As a matter of fact, it was only recently that several banks have banned their customers for buying and selling of cryptocurrencies. Citi Bank was one amongst the few.
With RBI putting a ban on the purchase of cryptocurrencies through its regulated bodies, it is hard to predict whether Cryptocurrency would still come ahead despite such bans in the country.
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