The Reserve Bank of India (RBI) today banned regulated entities such as banks and financial institutions from providing services to any business dealing with cryptocurrencies. Obviously, the Indian cryptocurrency exchanges will be greatly impacted by this move since they depend on banks and wallets for fiat money deposits and withdrawals. Banks have been given three months to wind up operations with cryptocurrency-based businesses. Surprisingly, RBI is thinking about a plan to launch their own fiat digital currency. We want to clarify that this ban does not mean a Bitcoin ban in India. This regulation only covers financial institutions like banks which are under the purview of the RBI.
The Indian cryptocurrency investor community is shocked by this move. While this is not a direct ban, it does stop them from participating in the cryptocurrency market. As part of the cryptocurrency investor community, we are also extremely disappointed by this move. This move will seriously derail India from its vision of a Digital India and allow other countries to move ahead of India in this revolution. This also stops investor wealth creation in India, at a time when the cryptocurrency markets are in the early adoption stage. Let’s come out as a single, unified voice and speak up against this move.
We recommend that at this uncertain time, cryptocurrency investors keep their crypto assets on their own wallets. We will keep you posted on further developments from RBI, banks and cryptocurrency exchanges.