Fierce India’s Crackdown Is Provoking Protests On Cryptocurrency Exchanges

Fierce India’s Crackdown Is Provoking Protests On Cryptocurrency Exchanges

cryptocurrency exchange
April 19, 2018 by Bitzamp
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Fierce India’s Crackdown Is Provoking Protests On Cryptocurrency Exchanges Directive issued by Indian Central Bank states that come July 6, financial institutions must shut down bank accounts of all companies trading cryptocurrency. Also Read: Tim Draper: The Ban Enacted By RBI Is Stupid And It Would Lead To Loss Of Talent In India This means
Bitzamp

Fierce India’s Crackdown Is Provoking Protests On Cryptocurrency Exchanges
Directive issued by Indian Central Bank states that come July 6, financial institutions must shut down bank accounts of all companies trading cryptocurrency.

Also Read: Tim Draper: The Ban Enacted By RBI Is Stupid And It Would Lead To Loss Of Talent In India

This means that by July, banks and lenders in India will no longer conduct transactions for financial purposes or with companies or individuals that operate with cryptocurrencies.

The Reserve Bank of India’s recent ban on financial institutions will certainly have consequences for the nation. However, thanks to Paxful peer-to-peer exchanges, it is unlikely that any of them will be used in cryptocurrency usage and adoption in general.
In his speech, Mr. Kanungo briefly summarized the rationale behind the directive that effectively shuts down crypto trade in India, contending that virtual currencies “can seriously undermine the AML [anti-money laundering] and FATF [Financial Action Task Force] framework, adversely impact market integrity and capital control, and if they grow beyond a critical size, can endanger financial stability as well.”

Although the Indian authorities are committed to encouraging financial technology to accelerate national development, the fierce crackdown on cryptocurrencies is provoking protests that India could be left behind in a crucial area of innovation.
The exchanges are considering taking legal actions towards the Reserve Bank of India’s decree in the Supreme Court of India. Some of the exchanges plan to join forces to approach the court in search of a favorable outcome. Law professionals think that Exchanges companies can fight the RBI’s decision in many ways.

According to Sathvik V, the CEO and founder of Unocoin, one of India’s largest wallet and exchange platforms the statement will leave the “legality status of Bitcoin or other crypto-currencies in Indian… unchanged”. He believes the RBI move is to protect people and companies from the risks associated with such volatile assets.

While exchanges such as Unocoin plan to continue their business, the fact that users will no longer be able to deposit and withdraw from exchanges directly to their bank accounts will surely have an impact on their results.


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