Bitcoin

No, India Has Not Banned Bitcoin Trading, Government Confirms

JP Buntinx | April 7, 2018 | 6:04 pm
india
Bitcoin

No, India Has Not Banned Bitcoin Trading, Government Confirms

JP Buntinx | April 7, 2018 | 6:04 pm

There are a lot of misconceptions regarding a recent decision by the Indian government. Various sources claim India has banned Bitcoin trading. That is not the case whatsoever. Instead, the RBI is ending its relationship between its own banks and any user or corporation dealing with cryptocurrencies.

The Current Bitcoin Situation in India

This week’s press release by the Reserve Bank of India has caused quite a stir. Depending on how one interprets the message, it seems the RBI wants to ban all Bitcoin trading. That is not the case, although their ultimatum is still rather significant. As of April 5th, the RBI has severed all ties with its own “regulated entities” and anyone dealing with cryptocurrency.

For banks servicing cryptocurrency companies, a big deadline looms overhead. All of these institutions have a maximum of three months to cease the support. If they do not adhere to this deadline, the bank in question is no longer a “partner” of the RBI. It is a fear-mongering tactic, although one that is not necessarily fatal.

According to Unocoin, there isn’t much to be worried about. There is no ban on Bitcoin and no indication the RBI deems it an illegal currency. No funds have been frozen either, and exchange users can continue to use the platform as they always have. With no banks alerting Unocoin of any impending changes, business will resume as normal until stated otherwise.

What Does it Mean for Bitcoin Trading?

That is the big question on a lot of people’s minds. Exchanges can always look outside of India for banking partners. Additionally, it remains to be seen how many exchange-serving banks will adhere to this ultimatum in the next three months. So far, it seems the damage will not be all too great. Do keep in mind this is always subject to change

As has become evident with other exchanges, there are crypto-friendly countries. Malta comes to mind, as Binance recently migrated there. There’s also Switzerland, which seems to keep an open mind toward cryptocurrencies. If push comes to shove, Indian exchanges have other options to look into. It may hinder the use of INR, albeit it is still too early to draw any conclusions in this regard.

This decision by the officials India is not entirely surprising. For several months now, the RBI has warned about the risks associated with cryptocurrencies. This latest “warning” seems to be a logical evolution of this semi-negative stance. However, the government is still working on actively regulating cryptocurrency. How that will play out in India, remains to be determined. The only thing that matters is how Bitcoin trading is not banned in the country.

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  • fujak

    malta comes to mind? and switzerland? sheesh, give a goddamn shout out to the most crypto friendly country in the world, Japan!!

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      • fujak

        get the fuck out of here loser

  • AKR-78

    This is a FACTUALLY INCORRECT ARTICLE.Just yesterday I received a mail from ICICI BANK,one of India’s largest banks mentioning that they would no longer allow purchase of cryptocurrency using their credit or debit cards or their platform.This was in pursuant to the recejt RBI guidelines.The author is mistaken to point out that RBI is ending its relationship with the entities.The guideline that the RBI gave clearly asks the entities it regulates to stop allowing purchase of cryptocurrency through their platforms within the next three months.If the author was correct, I should have never received that mail from the bank!

    • Santosh Kumar

      bank will not give notification to you.. it will first give notification to exchange and then your exchange will give notification to you.

      • AKR-78

        That is pretty hilarious to read, no offence. But as I said, I ALREADY have received the mail yesterday! https://uploads.disquscdn.com/images/9ff251f77480e07017eee8cb19a32e07a63cf173b854887836d249c57a34bcc8.png

        • Faizal

          Other banks like SBI, HDFC, CITI have already been giving exactly similar sms/mails weeks ago. Although action of ICICI can be attributed to RBI guidelines, other banks stopped long back. Kindly note this is barring use of credit cards and debit cards. Nothing is mentioned regarding netbanking, IMPS etc. People dealing in cryptocurrency hardly used cards.

          • AKR-78

            If you read the RBI order, they have asked any entities regulated by them to stop providing these services.IMPS is provided by NPCI which was formed by RBI and Indian Banking Association.So I guess payments ebabled by NPCI will also come under the ambit of this order

          • Santosh Kumar

            if you are concern about what will happen to your bitcoin if you have.. you can deal with cash. i am not sure whether you crypto investor or not

          • AKR-78

            I am not concerned about that. Ofcourse, I can still deal with cash but this is grossly double speak by the RBI since it has also come out that they are considering their own cryptocurrency for the Indian market. Also, dealing in cash is a stupid approach with so much emphasis on transparency.

  • Rahul

    this is a incorrect news and above video it is clearly said by him that u cant trade crypto through banking channels that means ban of withdrawal and deposit of money

  • Arunav Sanyal

    India – A communist country masquerading as a democratic one. Unfortunately its not even the good kind of communism like the Chinese have.

    Its Nehruvian bullshit like this why we play second fiddle to greater powers.

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