RBI has said that any entity regulated by it cannot provide services to any business dealing with cryptocurrency. I'm just going to give out the main points objectively. The situation isn't very good at the moemnt but let us not spread panic and FUD.
As per the latest release from RBI
Reserve Bank (central bank of India) has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, 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. A circular in this regard is being issued separately.
In simpler words RBI has fucked us over!
This will effectively stop:
- Purchase of Bitcoin/Alt coins via Indian exchanges with INR via bank a/c and payment gateways.
- Sale of cryptocurrency via Indian exchange for INR and receiving funds from these exchanges.
This doesn't affect, use of foreign cryptocurrency exchanges, decentralized exchanges or use of LocalBitcoins.com, and other uses of cryptocurrencies that doesn't directly deal with Fiat in anyway in India. I'm of the opinion that once the dust settles, cash transactions may boom.
If you are on Facebook then watch this video from CNBC TV18 which discusses the issue quite well.
https://www.facebook.com/cnbctv18india/videos/vb.169218193115587/1764877810216276/?type=3&theater
From my sources I've learnt that exchanges aren't notified officially and they are working to deal with this issue. If it comes to that there will be some time before everything winds down. We will have time to exit however, the prices might not be that great!
I saw some massive dips in price, live on our exchanges today in India. Users of Steemit from India, I will keep you updated as the situation becomes clearer.
This is a protectionist move from the government and I wish we had better people in power. Unfortunately, you and I are not the policy makers nor market movers. We are simply, small speculators who have to do anything to survive in this evolving market, and we will survive!
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Building A List Of Users From India—Please Fill This Form ASAP!
- Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
- Steem.Chat Contest #20
I expect nothing more from the corrupt Modi government. Remember demonetization in India when they banned certain bill denominations and the havoc that caused across the country? These people don't give a shit about anything else but their own power.
Canadians turned to LocalBitcoins after the Canadian banks started blocking crypto transactions, so maybe Indians will do the same: https://steemit.com/bitcoin/@techwizardry/canadian-investors-are-pouring-millions-into-localbitcoins-following-banking-blockade-on-crypto-transactions
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Cracking down on exchanges didnt stop people from buying crypto in China . and it will be same in India or any other country too. The main thing is Govt cannot decide where to put the value and where not. May be they put some road bumps . Wider adoption will take place eventually . DEX , regulations in some proactive economically solvent countries will push China or India to look back and revert their decision. For now , every mature crypto guy knows what to do . We have seen China and we shall overcome India too.
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very sad news for cryptocurrency
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I came to know about this news few hours ago and I really disappointed by the decision of RBI because banning cryptocurrency is not a solution and that makes it more difficult for those who wants to invest in cryptocurrency but now they also fears to enter in this cryptocurrency market,
I saw a massive drop in prices of zebpay and other cryptocurrency exchanges in India and it's really bad news for indian Steemit users,
Well we still have 3 months so let's see what happens after those 3 months 😐
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I can see the potential for global FUD
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What does not kill us, it will make us stronger. They can do nothing! They have no power here :)
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This is the official statement from Zebpay, one of the better apps in India.
Also, in my case, thankfully I withdrew everything and the only crypto-currency I have now are SPs. After power down, will there be no way to en-cash them in India?
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Next will be SEC regulation classifying ICO as stock . This will make sure every project is properly vetted before you can collect money from investors. The current crypto model will not survive so as most altcoins.Block chain technology will strive but the economic model will be different.
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Scammers called my father for credit card details and OTP. Thanks to Airtel, OTP never reached to his phone.
In the same way, government is putting ban to things to avoid such scams. Wow! Great move Indian Government. :-) To stop the abuse or risks, you stop the system altogether. Mega LOL! :-D
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This is such so disgusting, i am felling so frustrated. I mean what the hell is this going on.
If this happen then can't we trade in crypto currencies ? or have to exit at this time. It is so scary to me. Well, thanks for the update.
The title made to read the article immediately.
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Only a traffic jolt will bring down encrypted digital currencies but they will eventually win
All this is so for every Indian in steemit he can withdraw his money by traveling to another country
There are a lot of solutions
To me such news does not scare me
By the way I am new with you and I hope to develop myself and share with you my information is simple
My love for all...
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@firepower, hanks for the information. I strongly feel time will change everything and we must have patience till the policy is revised.
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I feel the same too. They can't ban it when the whole world starts accepting cryptocurrencies in the near future.
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And for this day we all were supporting BJP .
#boycotbjp
#IAMWITHCRYPTOS
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The banks are giving silly excuses about Money Laundering and Frauds while this move will certainly increase the Money Laundering aspects as Fraudsters will have their Black Money anyways and secondly our so called Bank stopped the only Bit of Regulation we had via Exchanges and KYC.
Now there would be no regulations at all.
Fucking great Move by RBI.
Screw only the common People's.
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We must sign a petition against it.
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for newly joined in investment in cryptocurrency must be strong heart. because the price is up and down. but. I think investment cryptocurrency is a very profitable thing. rather than saving money in the Bank.
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such a sad news for us and wish they will change rules in featuers so we can cashout without any problem.
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I don't know what Indian government want from us. I think they want that people only invest in stock market so money revolve around the India.
But they don't know people find other ways to buy and sell crypto.
When a tree start deteriorating then our government do one thing is to cut the whole tree instead of treat them.
They don't care about the birds and insects live on that tree and living their life happily.
You know i voted for BJP, totally wrong decision.
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Even I had voted for BJP. But if every Government is like this, whom to vote and what will be the meaning of Damocracy??
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Thanks for your cryptocurrency news update providing....I appreciate your blog.keep it up
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Send at least .01 SBD to @lektolek with a post link in the memo field. Support our curation initiative, please donate 1 SBD or delegate Steem Power.
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Very sad news,now what will the indian users do.
indian user's please stay connected with @firepower sir,by hoping that a perfect solution for the problem will come for us.
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Nice post, full of information and it is great news for those who want to buy bitcoins.
Thanks for sharing.
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This way too easy to get around and a wonderful business opportunity for the Indian Community. Easy, just way too easy.
Step #1 Set up shop in England or America.
Step#2 The foreign, by that I mean American or British "shop", receives the crypto on the exchange.
Step#3 The American or British shop sells the crypto and the funds are placed in an American or British bank.
Step# 4 The funds are confirmed with the "shop" in India, who pays the seller in rupee.
Step #6 Funds (dollars or pounds) are wired to the Indian shop's bank account.
Done over end story, India participates in cryptos.
Purchases of cryptos can be done in the reverse. Funds paid in India, confirmed with "American or British" shop. Purchase is made on the exchange and sent to the buyer's Indian wallet.
All nice just a few more steps and of course a few more fees but isn't that the way in India? Five more steps and several layers of fees. :)
I have full confidence in the Indian Entrepreneurial Spirit to make this happen!
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Are you sure? Will there be any way to do transactions through foreign exchanges?
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This news really got me worried but I am Hodling haha. I mentioned the reasoning behind it in my recent post.
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any idea how much STEEM Indians hold?
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Thank for sharing..! Friend
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Thanks a lot for sharing such information brother.
I really appreciate your contribution towards Indian community.
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This is very sad news. Now the problem is that how can we convert bitcoin to fiat currency? We will have to open an account in foreign exchange and then convert it into US dollar to transfer through paypal into my Indian account. This is the only option I am visualizing.
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Bitcoin has its risks. But bank authorithies must know about benfits to have some bitcoins instead make ban suggestions...
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If we start a petition will it be heard?
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This does not comes as a surprise , although its sad and people will have to find alternate means now to dabble in cryptos... Modi and his stooges have already sold India and its 1.3 billion plus people to the powers that be. Demonetization on behalf of Digital cash alliance and Washington, Attempts at usurping gold through the gold monetization scheme. Insane obsession with Aadhar implementation at all cost and focus on cashless economy . And now this ban on RBI regulated entities on dealing with cryptos while at the same time having the balls to tell to the people they are not against blockchain technology and will be coming up with its own centralized version " it will be named laxmi" of crypto currency due to the benefits of tracking spends and avoiding printing and logistics costs ... No body should have any illusion that India is a free/ democratic country .. We are all being controlled and their grip on our lives is getting more tighter each passing day. The sad thing is not many people comprehend it and are blissfully oblivious !!
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Very interesting. And it's sad to hear India and their Central Bank implementing this against VC. Of course the road to success is ALWAYS full of bumps so I guess you just have to keep the long term in mind with these things
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This is so, so awful. This much protectionism by the government isn't going to get us anywhere. Sadly the very word 'profit' is frowned upon by our governments, irrespective of who is in power.
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It's very important post. Thanks for sharing
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resteeming this. The huge dip has also been inspiration for some to buy btc and eth as the volume indicates.
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Well this is the actual reason why steemit is not developing in our country ...Because of the environment we Indians live in and yes not forgetting our politians and power ful peoples who are on the sit to make policies ...They always do neglect crypto /bitcoins and they have almost thought of finishing it from Indian Market ...Well I appeal not to lose hope and see what is the final verdict on that matter maybe a miracle can turn things over us..And if such things happen many steemians will suffer due to such policies... Thanks and update soon
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Thanks for the information truely a bad news for cryptocurrency..@firepower
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I think its too early to feel sad about the whole issue.keep your fingers crossed and lets see what happens next.
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Nice news,thanks for sharing
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Yes! this does not and should affect VC dealers in India as there many others ways to sell or buy Cryptos including the localbitcoin.com you mentioned.
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Nice post
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