Author: Jagdish Kumar, India
Even though India’s central bank, the Reserve Bank of India (RBI) has cautioned individual and firm not to invest in cryptocurrencies and directed the banks to stop all such transactions, crypto currency exchanges will still function, as there is no ban on them.
However, many cryptocurrency exchanges have now setting up their offices in other countries that promote the usage of virtual and alternate currencies for usage and even offer sops for anchoring in their countries.
Speaking on the RBI action, CEO of Zebpay and Blockchain and Cryptocurrency Committee of India member, Ajeet Khurana said that investors should stay invested instead of looking to sell their holdings as transacting is not limited to Indian market.
Though banks are supporting individual withdrawals, investors are losing their money in untimed withdrawals, I would suggest them to stay invested, as this will stabilize soon.
ThroughBit Co-founder and CEO Abhishek G said that after the RBI circular, Bitcoin rates hit a rock bottom of $6345 from $6603 per Bitcoin, which was a knee-jerk reaction for the next two days. However after 10 days Bitcoin crossed $7900 and subsequently after 10 days touched $9077 per Bitcoin.
Ahmedabad-based firm Kali Digital Eco-Systems which filed a petition against RBI’s ban has said that this is a temporary speed breaker, as government wants to slow down the process and see how they can regulate the market, as it involves money and there is an opportunity to showcase even a penny counts.
RBI’s greatest worry is that people on the garb of earning money in a very short span of time, don’t lose their and the government wants to check, whether this system can be misused by terrorist in crippling the economy.
Kali Digital wanted to launch an exchange in India, but could not go ahead with the plan after the RBI circular.
Many believe that crypto to crypto is the answer for RBI’s circular. As companies such as CoinDCX, Zebpay and Koinex announced such Crypto to crypto transactions.
Not only in India, even countries such as China and South Korea have banned such exchange and their companies have shifted to crypto to crypto exchange.