On 5th April 2018, RBI (Reserve Bank of India) has asked Indian banks not deal in any kind of cryptocurrencies related services, which is a major blow for Indian crypto investors and Indian cryptocurrency exchanges. Due to the high demand of cryptocurrencies in India, multiple crypto exchanges are now functional.
In the latest press release from RBI, RBI has told that it will not deal with any individual or business dealing with virtual currencies (VC’s) or crypto currencies.
Below is the exact snippet from the RBI circular dated Apr 05, 2018.
13. Ring-fencing regulated entities from virtual currencies
Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.
Reserve Bank 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.
It looks like RBI is not happy how people are losing their money in crypto scams and even money laundering.
However, RBI in point number 12 on the same circular said that it is also checking the desirability and feasibility to introduce a central bank digital currency, whose report will be submitted by end-June 2018.
The Indian crypto market has been shocked by this decision of the RBI, due to which Bitcoin price dropped to around 3.4 lakh from 4.8 lakhs. Also, we saw a drop in many other cryptocurrencies including Ripple, LiteCoin, Ethereum, etc.
People has started many petitions in response to this decision and asked RBI to reconsider this decision.
Almost, all the cryptocurrency exchanges in India like Zebpay, Koinex has sent the update to their customers asking them not worry and that they are exploring other alternatives.
What you can do as a Crypto Investor
So, if you are the cryptocurrency investor and has already invested hefty amount cash in this market and not booked profit till now or want to hold your crypto currency for future, then you should immediately make the account in international cryptocurrency exchanges like Bittrex, Poloniex, Kraken, etc. And when the times comes, move your virtual currency or asset from Indian exchanges to International Exchanges.
Don’t PANIC and sell your virtual currency, because, in long run, it is going to give you good results if invested wisely.
Do let us know what are your thoughts on this decision of RBI through your comments and what you will suggest to your fellow crypto investors. Do not forget to subscribe and follow us on social media.
Note: We do not encourage anyone to invest in cryptocurrency. It is your money, so make your own decision and invest wisely.