Why RBI Bans Cryptocurrencies in India
The Deputy Governor of the Reserve Bank of India (RBI) BP Kanungo, announced that entities regulated by RBI shall not deal with or provide services to any individuals or services dealing with or settling virtual Cryptocurrency.
Reasons:
Especially with several scams too taking place due to the virtual nature. Given the banks around the world are improving their securities of virtual currencies, RBI seems to have taken this move. Bitcoin saw a huge surge in popularity towards the end of last year, but the unregulatory nature can facilitate many fraudulent practices. China which was once a hub of cryptocurrency trading has made them completely illegal. Japan and Korea are others who have placed a number of regulations on these virtual dealings.
People taking loans and buying from credit card and failed to pay debt to banks resulting loss to banks.
Recent News:
The SC had earlier ruled that all cryptocurrency-related cases be clubbed together and fixed July 20, 2018, as the date for the hearing. But the case was brought forward as an industry body said the RBI ban is set to come into effect this week.
Many traders who have migrated from traditional trading to crypto markets have reported lack of choices in terms of trading instruments. Exchanges are beginning to provide crypto indices and derivatives (a contract between two parties that specifies conditions under which payments are made between two parties) like futures contracts, but unlike traditional securities markets, there is no consolidated marketplace with a wide variety of crypto-based financial instruments.
Reddit, another social media site, is filled with complaints against even the biggest crypto-exchanges, with many users citing total lack of response from the exchanges at times.
Investing in crypto-currency is like hedging your net-worth against fall of the dollar imperia, which can be assumed by the large population and can inevitably happen at same time. Most importantly, we support social vision behind crypto-currencies that is a free and hard money for the whole world.