Topic: Why did RBI ban cryptocurrency? (Read 298 times)

RBI haven't ban cryptocurrency as of now. They have just said that it will be scrapped out of the banking channels as banks will not provide any kind of support to any cryptocurrency exchange with respect to deposits or withdrawals. But yes this might not be a direct ban but can be said a move of the government towards complete ban of cryptos over the country. But I still feel this is a pretty wrong move as this won't really stop any kind of money laundering.

These are the typical two sides of opinion young people in India often hold for our government and ruling classes. On one side, we remain extremely frustrated like avikz because of the apathy, unprofessionalism and corruption of our politicans and bureaucrats. The politicians of all hues and nature like to milk the differences for electoral gains while the bureaucracy is content with lording over the ignorant masses.

The other side like "Virtual Miner" is hopeful and looks up to examples of countless Indians who have gone abroad and done so well. It's a well known fact that if the same people were to stay back, the work ethic of our national organization would have completely stymied their growth.

RBI has for long been a bastion of prudent management and good decisions. Unfortunately, under the present dispensation, I am not so sure. The government keeps stumbling from one economic disaster to the next social one. RBI decisions look to be along the same lines. A hasty decision taken without careful deliberation or expertise that you expect from an organization like RBI. Like so many other decisions, this one too seems like dependent on superficial issues like "ohhh..black money, ohhh money laundering, ohh terrorism". I call them superficial

The technocrats at RBI could have taken a much more thoughtful approach to this but i feel the government directives would have been to milk the boogeyman first.

The reasons for this move are forms of consumer protection concerns, market integrity, and money laundering. The last point was duplicated in a press conference, where the RBI vice-governor said that cryptocurrency undermined efforts to prevent money laundering. He also said cryptocurrency has the potential to jeopardize financial stability if allowed to grow too large.

I do not think that the ban of bitcoins by this company will cause bitcoin to collapse. The bit rate falls and then go in height!

The reason is the control tax and fill properly tax in government.

The reason why they ban crypto currency is nothing other than generic in the sense that its something we all know which is used for illegal activities, funding terrorists, money laundering, unable to track etc. But unfortunately, they decide to focus on the negatives over the positives.

While there is nothing to be done to reverse the decision that has been taken already, what should be the focus is post ban activities. They cannot stop bitcoin but for me if I found myself in that situation, the best thing to do is to stay away for a while because government and its agent would be very aggressive at the beginning in other to send a strong message to the entire community that they meant business but after that, it subsidies when activities could resume on a low scale.

We don't know the exact reason why they take such decision but it will affect economic growth of your country. Instead of banning why can't they take measures to regulate on the crypto currency by following countries like Japan, US, Australia.

Yes that is right. India is diverse country. The population is vast with different people having different perspectives to look at things and their own opinions. no  doubt India is a developing country with one third of the politicians as uneducated, but still we have many people here on board who are very intelligent and smart enough to tackle things. When an Indian Sundar Pichai can control an American mulninational with such skill, how can you really expect Indians to be foolish!!

It is just that we Indians have a different perspective right now to look at things. Maybe they are not ready to accept the bitcoin or blockchain technology because of some other reasons like lack of control, etc. Whatever is the reason with RBI for not to continue services relating to crypto currency...one fine day maybe they realize the worth of it and welcome it with open arms. Because until now this is a controversial issue in the country!!

In India, no crypto currency was banned. The Reserve Bank of India for some reason issued recommendations to its banks to stop providing services in the crypto currency, that is, while the ban is effective for various banking services that deal with crypto currency. However, the crypto currency is still free in the country and there are no restrictions for citizens there. I do not think that in the future the rules on crypto-currency will be toughened in India. Recently, the same bank announced that it is going to issue its own centralized crypto currency.

Yes bitcoin can use freely because it was neither legal nor illegal but they asked to stop the banks to restrict the transactions of crypto currency in three months so how the buying and selling of crypto currency is possible without banks.It may affect the growth rate but cannot completely stop the trading there are many other paying option also available other than bank transfer.

In India bitcoin is neither legal nor illegal. Just RBI warns the bank to freeze the account of the person who deals with the bitcoin transaction. And RBI gives warning for three months to stop the bank transaction. But serious discussion is going on about cryptocurrency. Dont know how it's going to be effective, lets wait and see. Hereafter trading in cryptocurrency will be more difficult i think.

Exchanges still operate because banks were apparently given 3 months for the crackdown. If nothing is done by then, exchanges will lose their access to banking services, which, believe it or not, is not a small thing. Indian exchanges are rightfully very concerned, and are planning on fighting the crackdown:

https://www.coindesk.com/indias-exchanges-want-challenge-central-banks-crypto-crackdown/

Peer to peer trading should be safe, but I don't know how exchanges will operate without access to bank accounts and payment channels. I do hope they come to a favorable resolution.

Yes,still the trade of crypto currencies are being done in India,we can see them on LBC where thr traders are doing as always even through the national banks too so their announcement didn't have any effect but some people are just talking about these to start FUDs again and create panic.But now the price of crypto currencies are in green even after these announcement.

This information is not true. The Reserve Bank of India did not prohibit and did not have the authority to prohibit the circulation of crypto currency in this country. He simply recommended that other banks stop providing services in the crypto currency. However, these services were insignificant in volume and could not have any significant impact on the use of crypto currency in this country. In India, the crypto currency has been in the country, and it is free to walk, citizens make all transactions in the crypto currency without hindrance.

That’s the correct news, sad to hear this thing because India is a great market for cryptocurrency well this thing must go on and green days will come again. I hope this is not the final decision because many people will leave India so they can convert bitcoin in fiat money easily.

It is necessary to remember that the Reserve Bank of India does not have the authority to prohibit the circulation of crypto currency in the country. He simply recommended that other banks stop providing services in the crypto currency. That is, the banks of India (and then, I do not know everything, or not), stop providing various services in the crypto currency. This does not affect the circulation of the crypto currency in India. Banks before this provided a small part of the services in the crypto currency, so their disappearance does not affect anything. Exchange and exchangers continue to operate in the country, citizens can freely buy and sell crypto currency. So do not panic.

That's right mate, OP has a misleading title of this post that RBI has banned cryptocurrencies, the truth is those banks only declared that they are disabled users account that related to cryptocurrencies. Maybe their government heard many issues to their people who abuse bitcoin and use it to fraudulent activities. Besides, those users have bitcoin transaction they used it and surpass the bank.

RBI didn't ban the crypto currencies they ask the banks to stop the account that which person deals with crypto curreniesy. This is the latest news announced by RBI about crypto currencies. There are lot of people involved in bitcoin and use this is their job. So if they banned they find another route to use. Traders using still Bitcoin transaction through some other ways.

India strongly forbids bitcoin entering the country, judging from the many risks that we get after investing or trading with bitcoin, then the RBI strictly prohibits trade or bitcoin marketing there is in the country

Yes,it made the trading difficult but still trading is possible through other ways like Western Union and Money gram but still the traders using the bank accounts through IMPS transaction on LBC.

As far as I know, the RBI hasn't banned crypto-currency as of yet. But they have been making crypto-currency trading more and more difficult. The latest news is that they have banned banks from dealing in crypto.

In practice that's still going to have a big impact, don't you think? Can't buy coins nor sell them for fiat. But maybe it'll have an unintended consequence, the start of a parallel economy that's using crypto exclusively.

These kinds of prohibitions are useless if to dig dipper.

Misleading title. The RBI hasn’t banned Bitcoin. It has banned banks (entities regulated by it) from providing services to cryptocurrency companies.
The stated reason is that the risks associated with dealing with cryptocurrency companies is high.

Yes,they want to control their citizen as China did in the past but people always find someways to use it.Because lot of people involving in the cryotocurrency trading as their full time job too so they will make some loopholes to use it.But still they have 3 months of time so anything can happen in between so untill that bitcoin transaction are allowed there.

I strongly disagree with the article because it can't be the sole reason for a diverse country like India to take such a decision. India is planning for a digital currency since a long time and that's not a crypto currency. It may or may not use blockchain as the core technology as well. Deputy governor of RBI also didn't mention about its possible name. It is the imagination of the writer and far from the truth.

India banned bitcoin and crypto currency because they are worried about the untraceable nature of the crypto currency. They fear that if the size of the market grows beyond a critical size, it will become a serious threat to the nation's economy. Even though they haven't clarified what can be considered as a critical size, but it is clear that they don't want their citizens to use any currency which is not regulated and controlled by them. It is a typical nature of fascism. But what you can expect when one third of the politicians of India are uneducated? This is a mentality which still makes India a developing country and not a developed one!

I don't think the RBI already banned the crypto currencies in their country because still I can see that the Indain traders are doing trades in the localbitcoin with IMPS but now this make the condition worse for the holders not the traders they are paying $500 less than the actual market rate wile selling and asking more price than the market rate while you are buying.But still people are using crypto currencies in India.

Such prohibitions will not be effective. This creates additional difficulties but cannot stop users of cryptocurrencies. Nowadays, the Internet helps to overcome any boundaries. You can earn bitcoins on any exchange. Transfers from individuals will not be banned. Therefore, there will always be an opportunity to cash the earned bitcoins.

Then in that case what will the people who have cryptocurrencies do ? There are people in India with cryptos worth millions !!! Is it just a waste ?

Hello Friend

Any one know what's the reality behine RBI ban cryptocurrency?

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