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India Not To Ban Cryptocurrencies

Apr 07, 2018 Posted /  1564 Views

India Not To Ban Cryptocurrencies

India Not To Ban Cryptocurrencies

Reserve Bank of India had issued an official statement that had a mandate for pulling back support from digital currency organizations. The news sent a wave over the Indian digital currency community and everybody could just discuss how India's Reserve Bank has banished cryptocurrencies. A massive influx of fear hit the market which resulted in dropping down of prices of digital currencies in India.

But did RBI actually boycott digital currencies?

RBI is a regulatory body and it controls the financial strategies of India, however, it isn't an authoritative body. It can set directive regulations for the bodies that go under it's characterised authority but it can't control or punish different organizations or people.

A law to boycott the utilization or exchange of cryptocurrencies in India needs to originate from either the elected government or the judiciary.

RBI's Press Release Stated:

"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."

The statement particularly specifies that this mandate just applies to the bodies that come straightforwardly under RBI's rules. This doesn't imply that this control will have no impact.

All banks enlisted in India go under RBI's control and need to follow its orders. This is awful news for Cryptocurrency exchanges specifically who depend on banks for their business. The trades and other digital currency organizations now need to discover a path around utilizing the services of Indian banks.  For instance, they will have an alternative of dealing in real money. Things have been made harder, not prohibited.

Another thing to note here is that RBI has not defined the timeline by which the regulated entities have to stop providing services to virtual currency related businesses. It is still allowed for them to continue providing services until RBI comes up with a further notice. Nothing has changed in that regard for now either. It is the market FUD following the news that is driving the prices down.

Something else to note here is that RBI has not characterized the timeline by which the controlled entities need to quit giving administrations to virtual currency related organizations. They can still consider keeping furnishing administrations until the point that RBI thinks of a further notice. Nothing has changed in such manner for the time being either. It is the market fear following the news that is bringing the costs down.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Reserve Bank of India India Not To Ban Cryptocurrencies India Cryptocurrency regulation Regulations India bitcoin india India crypto ban Cryptocurrency ban

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