Indian Crypto Exchanges React to RBI’s Statement
Reserve Bank of India (RBI) recently passed a statement, which effectively banned the Indian banks from dealing in cryptocurrencies.
In CoinFrenzy’s recent article, we went through the recent announcement of the RBI to shut down all support to cryptocurrency exchanges in India.
RBI clearly said in the announcement, “Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others”
Indian crypto enthusiasts have been repeatedly cautioned by RBI that traders and holders of virtual currencies regarding the risks involved in dealing with virtual currencies. Keeping the associated risks in mind, RBI decided that with immediate effect, the entities which are regulated by RBI would not be allowed to deal with, or provide services to individuals or business entities which deal with or settle virtual currencies. The regulated entities which are already providing these services would have to exit the relationship in a specified time.
While this is a major setback for all the crypto enthusiasts in India, the Indian crypto exchanges are planning to hold their grounds. Ajeet Khurana, the CEO of Zebpay, tweeted, “No way I am stopping. We will continue to do what is best for our customers, and what is best for our country. Am studying the present situation and will react shortly. and we will emerge stronger”.
A more positive Shubham Yadav said, “Well RBI did not ban cryptocurrencies. It told banks (regulated entities) to stop any kind of business relation with the companies dealing in virtual currencies (VCs). There is a difference between ban and stop. Ban makes it illegal. But RBI did not say that. Stop means discouraging it’s use”
Like staying updated with the latest news about cryptocurrencies? Subscribe to our newsletter!