Bitcoin Forum

The Indian central bank’s crackdown on virtual money may drive cryptocurrency exchanges out of the country to more friendly locations.

Earlier this month, the Reserve Bank of India (RBI) issued a directive that, by July 06, lenders must close the bank accounts of firms dealing in cryptocurrencies. Banks are also forbidden from offering loans or other services post-deadline. Essentially, this marks the end of the road for the digital currency-related operations in India.

But the exchanges are not giving up just yet.

“It won’t be possible for us to function in the current regulatory environment with existing business models. Therefore, several firms are looking at registering their head offices out of India,” said Shubham Yadav, co-founder of Coindelta, a cryptocurrency exchange.

These “cryptocurrency-friendly” locations include Singapore, Switzerland, Estonia, Malta, Japan, Dubai, and the Cayman Islands. “This way, we won’t be an India-centric exchange but will become a global player,” the CEO of another virtual exchange company said, declining to divulge the firm’s plans.

qz.com (https://qz.com/1253245/with-the-rbi-cracking-down-indias-cryptocurrency-exchanges-look-to-singapore-switzerland-and-malta/)

I guess this is the obvious move, after everything that happened in India. I think India will regret this in the future, but I guess they had a better approach than China. At least they didn't cause chaos by banning exchanges. Of course that the chaos actually happened, but only because people misunderstood their decisions, because although they are keeping a super protective approach toward crytpo, they didn't opt for a straight ban like China. They kind of invited the exchanged to leave the country, without telling them to, but with this move, I think they are giving them more time to make the necessary adjustments.