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The term of the Reserve Bank of India (RBI) to the banks to sever ties with entities that deal with cryptocurrencies finally ends today. Exactly three months ago, the central bank of India had asked the banks to end the relationship (if any) with companies focused on cryptocurrency. The RBI issued the circular on April 6 that was challenged in the Delhi High Court, which initially refused to grant an injunction. Even the Supreme Court refused to issue a stay order on July 3 . The case is still before the Supreme Court which will hear the case on July 20. Since the ban was imposed, there was a feeling that the cryptocurrency market will survive the ban on the RBI.
] Before the crackdown, some exchanges, such as International Digital Asset Platform (IDAP) and BuyUCoin, have even planned to move the base abroad in order to escape regulatory repression. Once the RBI ban on the involvement of commercial banks in cryptocurrencies will take effect, most exchanges should move to peer-to-peer networks or social applications like Telegram, according to the retail investors, reported Thomson Reuters. Despite the repression, there is a perception that the industry will survive the ban on cryptocurrency . Niranjan Patil, a cryptocurrency expert based in Bengaluru, told NDTV that cryptocurrencies would not become illegal in India. believe, since RBI's central bank had indicated in April the first week that the government is working on its own piece of crypto.
Even before the circular of [6avril1945] the Reserve Bank of India (RBI), had, warned users of cryptocurrency, traders and holders of digital currencies. The first RBI warning was sent in December 2013, the second in February 2017 while the last in December 2017.
As expected, most cryptocurrency experts are not happy with the move.
Awanish Rajan, CEO of IDAP.io, "I think the government should consider that such a measure will stifle the entrepreneurial spirit that has developed in the rest of blockchains and cryptocurrencies. "The goal of RBI is to protect the public, but I do not think that dealing with cryptocurrency Since the technology can be used wisely or abused, the government must discuss with the people involved in the blockchain and cryptocurrency and develop regulations together so that the benefits to the public and start-ups involved in this new technology are maximized while ill effects are eliminated. "
Sharan Nair, senior vice president at CoinSwitch.co believes that now cryptocurrency trading will be limited to more than the counter and P2P platforms.
" With the approach of the deadline, the cryptocurrency trading will be limited to OTC (over the counter) and P2P platforms. This will be a setback for stock exchanges and blockchain companies aspiring to build world clbad products / services using blockchain technology. The only thing is to be patient and watch, "said Sharan Nair, vice president of CoinSwitch.co
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