India’s Cryptocurrency Banking Ban Goes Into Effect This Week

Rate this post
India’s Cryptocurrency Banking Ban Goes Into Effect This Week

By barring financial institutions from engaging with exchanges, India has pushed cryptocurrencies farther into the shadows and away from widespread usage.

A circular issued by India’s central bank on April 5 said that no firms regulated by it should interact with or offer services to enterprises dealing with or settling virtual currencies. The Reserve Bank of India (RBI) is concerned about consumer protection, market integrity, and money laundering, according to the contentious circular, which offered banks three months to comply.

The Internet and Mobile Association of India sought a temporary halt to the measure, which it described as “arbitrary, unjust, and unlawful.” The plea was denied, and the next hearing is scheduled for July 20.

This week, the country’s cryptocurrency exchanges issued remarks in response to the RBI’s most recent instructions. Zebpay, India’s first and biggest cryptocurrency exchange, ceased accepting rupee deposits and withdrawals on July 4. It said that coin deposits and withdrawals, as well as crypto-rupee and crypto-crypto pair trading, will be maintained. Coinome, which released a similar statement, assured its consumers that their coins will preserve their value in accordance with worldwide markets and cautioned them against panic selling.

Dear User,
Today we are disabling the rupee deposit and withdrawal options on the Zebpay app. This is being done in light of the bank account closures as per the RBI guideline.
More details here: https://t.co/bptLZXFL7R pic.twitter.com/NEvVNHgJiP
— zebpay (@zebpay) July 4, 2018

Cryptocurrencies such as bitcoin have never been prohibited in India, and tokens may still be used to buy items from a merchant that accepts virtual money. Peer-to-peer (P2P) trade in fiat money may also continue without the need of traditional banking systems. P2P trading networks have been created by Indian exchanges Koinex and WazirX. “Loop is a wholehearted effort to guarantee that the legitimate and confirmed investments made by Indian investors do not become dead assets,” Koinex said in a statement.

  Action Star Steven Seagal Backs Bitcoin Rival, Bitcoiin2gen

However, there is little question that this latest development drastically limits the industry, and it seems that additional controls are on the way. In February, Finance Minister Arun Jaitley said that the government was attempting to “eradicate” the usage of cryptocurrencies in the nation.

You are looking for information, articles, knowledge about the topic India’s Cryptocurrency Banking Ban Goes Into Effect This Week on internet, you do not find the information you need! Here are the best content compiled and compiled by the smartinvestplan.com team, along with other related topics such as: Cryptocurrency.

Similar Posts