Contrary to some earlier reports, there is no Bitcoin/Cryptocurrency ban in India, at least not yet.
The other day a few news stories came out saying that India would be banning cryptocurrencies.
Ones like this one:
However, if you really read in to exactly what is being done here, you can see that it isn't an outright ban of bitcoin and cryptocurrencies at all.
What is it then?
It more has to do with separating local regulated banks from the crypto industry.
The wording being more along the lines of this:
The RBI has announced that they will be ending the relationship between its own banks and any user or corporation dealing with cryptocurrencies.
More can be found here:
https://www.newsbtc.com/2018/04/07/no-india-not-banned-bitcoin-trading-government-confirms/
That sounds like a ban on first glance, but it just means that regulated banks can no longer be involved in the space.
For the banks that are currently servicing cryptocurrency companies/exchanges, a big deadline looms ahead.
The RBI has given them 3 months to exit the space or they will no longer be considered a partner of the RBI.
That may not seem like great news, and it's not, but it definitely does not mean crypto is banned in the region.
Not great news, but not the end of the world.
Another thing to keep in mind is that even if some of these banks cease their support of crypto related companies, these companies can always look outside of the country for support.
Exchanges, for example, could always look outside India for banking partners.
It's not entirely clear how many exchanges will be affected by the RBIs newest stance, but it certainly is not as bad as some news outlets made it sound.
At least not yet.
What happens going forward is anyone's guess in regards to future regulations, but it will certainly be worth keeping an eye on over the next 3 months to see how many banks ultimately exit the cryptocurrency space.
But as of now, bitcoin trading has not been banned in India, despite what some headlines may have you believe.
Stay informed my friends.
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Follow me: @jrcornel
Just to clarify. RBI has banned all of its regulated entities which is nearly all of the banks in the country from rendering services to entities dealing with cryptocurrencies. This implies crypto-exchanges in the country cannot provide purchase/sale services of any digital currency against INR currency pair within India. There are very few autonomous banks that don't come under the purview of RBI but these cannot render services at scale and ergo useless for the purposes of trading cryptocurrencies.
Indian Exchanges can however continue trading crypto pairs but that's useless if people cannot enter into the markets with money or exit their positions for INR. If these exchanges move abroad they are still unable to render any Crypto/INR pair to any Indian citizen as these transactions would then be illegal under other govt policies already in place.
The government however hasn't banned cryptocurrency or trading in cryptos itself but RBIs ruling prevents most of the speculators from entering/exiting the market through legal channel-aka Indian exchanges. This will result in OTC trades which I think is fine too but the price won't be good anymore and the volumes maybe very low.
Maybe my post will clear things up a bit more if anyone is interested to learn more.
upvoting for visibility.
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Thanks for the added clarity on what is going on!
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Yup we will have options like selling cryptos to payeer etc and then get the resulting fiat in our accounts. Or trust people, send them cryptos and ask them to send payment via Paypal. Things like that. But these things might be risky and certainly very costly.
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Beside OTC trades, emergence of peer to peer exchanges like InstaShift during these times is a boon to crypto enthusiasts in India. Now the question is how long Government will allow OTC or peer to peer trades; as such trades bring in zero revenues to the Government coffers?
I think the advisory by Pakistan Government which followed the Indian announcement for restriction is much more stringent.
Heading over to your post now to get the exact scenario and your views on it 😊
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Thank you for posting @jrcornel.
Appreciate the detailed analysis.
It does make sense to separate them.
All the best.
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Thanks for sharing! I think the concern is it could be banned in India...
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It's funny how the mainstream media can brainwash the herd like a hypnotist
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lets see what will be happen in 3 months but now price better than before
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thanks for the information
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Hey @jrcornel,
I think it is not so bad news for those Indians who are, here on Steemit, just for blogging. Money is just an incentive which is driving those people to post good content and frequently on Steemit. Those who have the passion for writing will never leave Steemit for this reason.
On the top it, if they continue to write it will only increase their crypto wallet which they can cash out in future whenever it is possible. Just treat it as your saving account and continue to post good blogs.
Good luck!
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Hello, @jrcornel since there is no option left for us to get INR/crypto relationship as we can't buy or sell crypto directly for our Fiat.
It's a ban! They are serious this time!
Maybe Exchanges use a bank from other countries to transfer the fiat.
BUT we won't be able to buy cryptocurrencies in India.
All the more reason to earn from steemit if we want to expand our crypto portfolio.
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Yes the ban is on. Why r u writing false news.
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Isn't this the second time they have announced a fake ban on crypto?
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Nice post, thanks for the detailed info
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Its a very good time to buy in for Indians who are believers in crypto and not just in it for marginal trading. For the first time indian exchanges are running a lower arbitrage than their foreign counterparts.
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this is good news, I appreciate your time in publishing it dear friend @jrcornel
I wish you a good weekend
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good to know!
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How can you ban bitcoin?
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Hello! I followed you, let's increase the power of Steemit together! I hope you follow me. I'm always glad to have a new acquaintance with good people! Upvoted this post! ;)
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Bravooo!! Good post ...
Amazing technologi...
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For countries prohibiting crypto, it's their loss. Bitcoin and crypto is unstoppable and knows no boundaries nor country. With crypto you have a choice to hold your cash in fiat or in crypto. And going by history which one do you think the masses will prefer once they get enlightened?
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i wouldn't be surprised if the governments around the world try to impose some kind of laws for cryptos or bans if they cant control it.
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so far still safe.
but news stories like that can make our heart attack suddenly😄
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Regulations increase and make crypto continue to fall. It is not the end but after seeing the price of crypto so high I tempted to buy more today.
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That’s positive news for crypto!
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This is why I hate to listen to mainstream media because they have lots of BS. They like to invest catchy headlines without thinking the effects to normal people as long as they get the attention of viewers.
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If it is officially not banned yet, why the false news making the crypto market unstable. All these negative news making the market more volatile.
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I don't like countries banning crypto
i would like to see crypto become more and more of an usual thing too use as payments
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You and me both.
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Nice post! that’s positive news, thanks for information
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@jrcornel For now we are in the time of regulations, bankers need to get hold of cryptocurrencies, but whether or not they are being forced to enter the blockchain world. Long live the BTC. Regards! Thanks!!
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Financial Technology is growing every day very fast. RBI is just scared of the volatility of the crypto market.
No one will stop cryptocurriencies. Egypt banned all crypto, but still people do transactions in crypto.
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Thank's @jrcornel ..so far there has been no official news of bitcoin is still valid in india?
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Well the news is that they are asking regulated banks to step away from supporting the local exchanges. That means those exchanges could still go to other banks outside the region to support them. The trading itself is not banned per say.
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Thanks for explanation...
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???
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Thanks this is a rarity. I have seen such a helpful post accompanied by so many helpful comments. Steemit at its best.
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!!!
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Good sharing! This post is good!
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