Although the Internet is flooded with FUD today India has banned cryptocurrencies in the country which is not the case. The RBI has published a statement describing new banking regulations.
India has not banned cryptocurrency
The truth is that the Reserve Bank of India (RBI) issued a statement that prohibits regulated financial institutions from dealing in cryptocurrencies. Those banks and institutions that already have deals in cryptocurrencies will have to cut the ties within a period of time not yet specified. The official statement says like this,
“It has been decided that, with immediate effect, the entities regulated by RBI will not treat or provide services to any individual or commercial entity that deals with or liquidates VCs.” Regulated entities that already provide such services must leave the relationship within a specific time. A circular on this is published separately. ”
It should be noted that this is only a paragraph of a press release of 16 sections of General Director José Kattoor that addresses many aspects of the current financial situation in India, including one that proposes the possibility of the RBI developing its own digital currency.
The conclusion of the statement is that banks are not authorized to deal with or facilitate relations with or in cryptocurrency. What essentially does not cause any change on the ground, since no bank in the country offers cryptocurrencies and neither exchanges have official partnerships with banks.
Reports on the accumulation of regulatory concern in India that began with the tremendous rise and fall of cryptocurrency prices at the turn of the year. Each new report or change of position has been moving towards this statement.
Like China, India is exploring its own digital money
In fact, the declaration and regulatory position are almost exactly that of its close neighbor, China. India’s statement refers to protecting its citizens against fraudulent practices associated with digital assets, curbing money laundering and the potential financing of terrorism, as does its China Bank counterpart.
Continuing with the parody, the RBI statement also has a section that describes an official digital currency based on the blockchain technology that could be implemented in the near future that would provide the ease of use of cryptocurrency as Bitcoin but would still be regulated by the bank. central and, therefore, that offers the same limitations as the present fiat.
The movement has caused waves of apprehension and anger throughout the Indian Cryptocurrency environment. Perhaps it is better to summarize it in this statement by Sathvik Vishwanath, co-founder of Unocoin, a virtual currency exchange. “I do not think this is the right direction the central bank has taken, it will cause panic among a few million people in India who are already using cryptocurrencies – if they want to launch their own digital currencies, they do not need to ban existing currencies.”