Author: Jagdish Kumar, India
With Reserve Bank of India (RBI) directing all banks and non banking financial institutions (NBFCs) to cut all tie with cryptocurrency exchanges and those dealing and trading with virtual and crypto currencies, this will results in millions of losses.
There will be huge loss to firms and individuals who have invested huge money in acquiring crypto assets and this is not a right way, Singapore based cryptocurrency exchange, Alluma founder and CEO, Akash Aggarwal said.
Aggarwal said that RBI has not said that cryptocurrency is illegal, or that it is banned in India, or that you cannot trade in cryptocurrencies in India, and they have not told cryptocurrency exchanges to shut down.
He also pointed out that under the current RBI policy, any Indian can remit $250,000, which is already there, so if any individual is using money to buy crypto assets, what is the concern. Imagine, if people start following the RBI route, billions of dollars will go outside the country and people start using foreign exchanges to buy crypto assets, the RBI announcement will fall flat.
RBI is worried about money laundering and terrorism financing, so for that RBI needs to bring regulations and the existing cryptocurrency exchanges are already following KYC guidelines for users registered with their platform for trading in crypto assets.
Aggarwal said that even if the RBI cuts off the fiat currency supply to the industry, people will trade cryptocurrency to cryptocurrency, which they have not banned and mentioned that his company is principally looking to offer this same service after entering the Indian market.
The money raised from the ICO will be used in expanding their operations to India.
It is also looking to provide crypto to crypto trading, which is a large market in India. We will be coming out with some features that will seek to get people from trading on global exchanges onto our exchange, Aggarwal added.
Alluma is also looking to enter the Indian market in the third quarter of 2018 and is also looking to for an initial coin offering (ICO) under which they are looking to raise $25 million.
Image Credit: Alluma