India imposed a ban on the purchase of crypto currency through banks

India imposed a ban on the purchase of crypto currency through banks

The Reserve Bank of India (RBI) yesterday, April 5, took tough measures regarding the crypto-currency sector. It is reported that Hindus will no longer be able to buy digital currency with the help of banks. The statement said that the organization repeatedly warned users about the risks of investing in crypto-currencies. Therefore, RBI decided to prohibit banks from providing services to crypto-exchange exchanges. And those financial institutions that are engaged in this practice should stop this type of activity for a certain time.

However, the crypto-currency sector has become accustomed to such sanctions. Since users can not use banks to replenish their accounts on crypto-exchange exchanges or withdraw funds, the popularity of such P2P-platforms as LocalBitcoins, will increase dramatically. At the moment, the daily turnover of LocalBitcoins in India is more than $ 1 million per day. After the adoption of an RBI similar decision, there is a high probability that this figure will increase significantly.

According to the CCN report, the volume of crypto-trading in India has fallen by 90% over the past few months due to the fact that financial institutions have gradually ceased to cooperate with digital exchanges. It is worth noting that the actions of RBI can be regarded as part of the state regulation of the crypto-currency sector. The decision entered into force on April 5.