Bitcoin Forum

The Reserve Bank of India (RBI) said regulated entities cannot offer crypto assets in the country, but that does not equate to an overall digital asset ban.  READ MORE VIA THE LINK BELOW...
https://worldpublicityblog.com/index.php/2020/01/23/india-central-bank-says-it-hasnt-banned-crypto/

It cannot be an overall ban. The ban was for the financial sector for them not to get involved in transactions using cryptocurrencies. That would include banks and other financial establishments. If this is the case, individual citizens in India has the freedom to transact, trade, and use crypto for remittance.

in almost all countries bankers suddenly do the same thing with this, why is that, are they worried and afraid that fiat currencies will be replaced by new technologies such as bitcoin and blockhain, it seems they don't have to show fear like this, everything should work okay, bitcoin doesn't force people to stop using fiat currency so BANK's attitude shouldn't be like this to bitcoin, I think this news is old news that has been picked up and has no influence on the price of bitcoin, basically it is actually BANK and bitcoin can walk side by side, still all Indians have the freedom to use bitcoin too, why should it be banned, it looks funny and ridiculous

Right. They did not ban the bitcoin transactions but they do not recognize it as a legal tender which makes it difficult for any holder to spend or convert them to fiat. According to some articles, a lot of exchanges there were forced to close down due to the pressure and unfavorable position of the government towards crypto. There were also reports that they are planning to launch a government-backed crypto and that's probably why they have all these restrictions.

India never said bitcoin is ban. RBI had asked financial institution not to assist cryptocurrency related transactions. Bank have stopped cooperating cryptocurrency transaction and asked their customer not to transact any kind. People are able to trade frequently but I think it's a lot of pressure. In our country, it's ban  :'(

Back in July 2019, there was like a proposal made to ban crypto however it seems like it changed to this.
I guess it is better to be like that, rather than banning it.
This seems like people would buy Bitcoin through personal transactions. I am pretty sure this is like an initiation of the government to make their own coin, but let's see how it goes.

The reserve Bank of India has stated that though the digital currency is not completely banned in the state but they cannot allow freely to use this asset. What I gain from this statement is that this is another way of regulating this digital market as they have block users access to banking channels. As they have ordered not to provide services to the people who are dealing in digital currency.

Indian banks are so confused on one statement they say crypto to fiat and fiat to crypto transactions are banned. User have lost their bank account who did those transaction and still they claim no ban. Do they think citizen of the biggest democracy are fools?

As far as I know, the ban is only effective for banks and does not restrict cryptocurrency exchanges from operating. Though we must not be confident that they wouldn't include a total ban on the future.

The ban, for me, looks like a precautionary measure to prevent banks from abusing the 'cryptocurrency' hype, since they knew banks would advertise them aggressively to get more profit from innocent investors that does not know about its negative effects from volatility, often advertising it as "Have gains of up to 30% in less than a month" schemes.

Definitely, there is no application of any BAN of cryptocurrency in India because I think there is still no law passed and approved for this matter so the India Central Bank could never pronounced any ban. But, and this is where the problem is, they are making it so difficult and even impossible for the fledgling cryptocurrency industry to connect with the banking system, making people wary and nervous to continue dealing with cryptocurrency -- certainly not the best environment for this industry to continue growing. In the most effective way, the government has stifled the cryptocurrency industry, and they are doing it successfully even without banning anything. Sadly, this is showing us that cryptocurrency can not really ignore the power and influence of the government. Let's hope that since it is quite clear that there is really no BAN, people will realize that in the first place cryptocurrency means people to people and that they can still do business here without the government and the banking industry.

It's not far off an actual ban, they are basically making sure no-one that is legitimate and is in the financial industry is able to offer crypto-based services to other companies or consumers. They've killed the "supply" of bitcoin essentially, making it impossible for consumers to get their hands on it (without turning to dodgier methods), and making it impossible to operate a business on the blockchain.

They don't have the power to completely ban bitcoin, it's a decentralized currency and they can't control it. But they can control how people get involved in it, and it's actually pretty shitty how they've resorted to this method.

There is an old saying, where that if you ban something, you are only going to create a bigger underworld market. Better to control it, tax it, profit off it. Looks like India is taking the ban route, I wonder what the future leads for the financial sector.

In my country, no bank buys or sells a digital asset to anyone but that doesn't make it illegal, so traders can deposit and withdraw cash from banks to their crypto trading site, this is not a problem at all.

That's the common scenario of many countries because the conventional banking system is really afraid of innovation of blockchain system because they think it would be a threat for them, Day by day blockchain system is developing and getting accepted around the world in both public and private sector, some countries are considering this blockchain system would be the key factor in the monetary world so, with the change of time, this type of perception and policy will be also changed when the will realized the actual fact, let's see what will happen in the coming days.

I'm not sure why people keep on keeping on with their misconception of the actions of the RBI. It was never a ban to begin with. All that it was is a restriction placed on banks and other financial entities on transacting with crypto related transactions, that is all. It is still perfectly legal (albeit, discouraged by the government for sure) to hold and trade BTC on a p2p market.

The damage that is done is mostly in the regulated crypto businesses, whom depend on supportive legislation to keep in business. That's why you see Zebpay and others moving out of India.

I would argue that this is not a very wise move to make given the loss in revenue and potential future growth that this crypto sector can bring to the Indian economy. But hey, there's nothing we can do about it.

That's basically part of what everyone is fighting for, but the fact is some banks have frozen accounts of individuals, known to have been trading crypto. It's pretty big over there and these guys have been getting a lot of attention. BEcause if what RBI said is true, then they've definitely acted outside the law or the banks have by freezing individual accounts!

its not really easy to overall ban crypto in one country
they can only do it in some centralized platform like bank
in my opinion, it will not really harm bitcoin because individuals still can use it or use the platform of other countries

Great news! I was hoping that India would change its policies. Apparently, this day has come. Perhaps, it was a misunderstanding from the very beginning, or maybe the people who weren't happy with hostility affected this change. India is a country with fast-growing population. However, it seems that there aren't many crypto users there. Perhaps, favourable or at least neutral policies will be able to change that.

When it comes to regulation the Government will see Bitcoin's from two perspectives first in terms of payment, second as an investment or asset like stock and stuff. That's why in some countries bitcoin has been banned but you can still use them for speculating like gold, I think this is humans' right to own and hold something precious, and so grateful that the government are not banning it if they just wanna hold them as an investment thing.

Even if they wanted they couldn't really ban Bitcoin and/or cryptocurrencies. An ideal internet should be based on decentralization and democracy - that's why we need a global internet mesh network without all those ISPs that can be restricted by governments. A total ban on crypto could also have major influence on the migration of people. If a government would ban crypto - would raise question marks in the population - "why does our government ban a virtual currency that offers freedom?".

not far from banning, I guess they said it like that because they don't want to be considered against technology and innovation, limiting any regulated entities from offering crypto is basically like limiting person from their own right, though there's nothing I can do about this and people in India could probably only be able to deal using cryptocurrencies for individual transaction or online transaction.

They won't do such total ban as they can see that a lot more advanced countries that are totally accepting crypto. Yes, if they do ban the crypto usage, it is like they are inhibiting the growth of advanced tech. And with the relatively large population of that country that are into crypto, even if they ban it, they will always find a way on how to deal with crypto. There's no benefit in banning crypto usage, they will just create more resistance from this action.

Only the third world countries banned bitcoin and in India i am sure there are having restrictions going on but not sure about the situation right now but these countries does not think about the innovation as the authorities are not having the ability to understand the technology even though there are having more techies. Does the central bank have the authority to ban bitcoin to come up with a statement like that  :-\.

I see a plain simple explanation, they said that regulated entities couldn't offer crypto asset to their community, in the first place, cryptocurrency asset is mainly created with the characteristic of being decentralized. If they are pushing regulation in a cryptocurrency asset, then it is clear this asset will not adhere to their intention. Cryptocurrency in the first place should not be banned at all as India is one of the most fastest emerging country with people focusing on technological development. Cryptocurrency could be their asset if they support it.

Actually these coming days have not yet arrived. We are been expecting something good to show up with the blockchain technology since years but were not successful to do so. Banking systems are getting outdated and they do need some change.

Blockchain if linked with the banking systems can really make a huge change. Peoples can rely on the blockchain networks for their fiat transactions and it would also give a lot of ease for the transactions. Global transactions would be supported at the minimal fees and it would help a lot of traders trading over the nations. We are really expecting a lot things from the blockchain technology or bitcoins and hope our expectations are been fulfilled.

Trust me there are no such bans but yes bankers often send threatening and warning messages not to indulge in crypto transactions. They are afraid of losing preference as users might opt for crypto instead of fiat due to the fact they don't have control over it and these warning messages are creating a huge negative impact on crypto community as most of the amateur users stay away from crypto, this started post 2017 when bitcoin gained massive popularity due to the bull run and most of the newbies started using bitcoin.

India is an interesting country. Didn't they try to ban cash and gold? They are quite sophisticated in their use of technology, and they are planning to build thorium reactors to generate electricity. This a safe and cheap way to generate electricity, and the omly downside is that it doesn't [roduce weapons grade isotopes.

If they generate a surplus of cheap electricity, then it would obviously be a great pace to set up mining farms, and they have just announced a training programme for Bitcoin mining.

https://news.bitcoin.com/bitcoin-mining-training-30-cities-india/

India was an interesting place with a growing economy but the only negative is the ruling government who does not have any idea about innovation or technology as they are too much focused on religious polarization as they are thinking of getting the vote bank of religious fundamentalist. The government banned 500 and 1000 INR bank notes without any prior warning and it was a real shit show during that period as they did not have sufficient newly printed notes.

India does have the worlds largest Thorium reserve and most of the reactors will start functioning by 2025

The training program for BTCitcoin mining is conducted by a private association and it has nothing to do with the government as they are still in the dark ages.

Yes RBI has not banned CryptoCurrency in India but i don't understand why they have ruled out for all banks not to support any crypto related business .It has effected all Crypto exchanges to stop there business in India but i didn't understand on what basis they decided. Better to understand the Crpto Currency and give proper resolution for Crypto Currency in India because there are so many countries regulated Crypto currencies and getting the benefit in the form of tax.

The status of reserve bank is same as before, they are not going to allow crypto as a legal tender but they know that it cannot be banned. They have understood that with banning banks to transact with exchanges, they are losing more on taxes. We may see a positive outcome from court soon and exchanges will be back with bank transactions.

You cannot make a statement like that without talking about how the country has suffered tremendous terrorism, which is the reason that people there have turned to nationalism. And the money ban was because its neighbour was essentially printing fake notes to try to destroy the Indian economy - lets leave politics out of the bitcoin forum in any case. If India with its large population adopts Bitcoin in a big way this will be massive for BTC.

Since you touched the narrative of terrorism, lets analyse the major terrorist attacks against military and parliament
Indian Parliament attack (2001) Under BJP government. Do you have any idea how many terrorist attack happened after Modi government came into power including attack against military camps which never happened in history and you are coming up with the narrative that people are supporting the current government and turning to nationalism because they are holding the record for the most attack against Indian military.
Indian Army brigade headquarters in Uri (2016)
Nagrota army base attack (2016)
Pathankot attack (2016)
Sukma attack(2018) and just before the elections when all the polls were against the BJP because of their incapability to fulfill anything and turning the economy upside down with demonetization we had Pulwama attack (2019), all these attacks were against Indian military base and camps, hope you have heard about the recent arrest of a police officer who is close to the BJP government, deputy SP Davinder Singh who was recently arrested along with terrorist and he was directly involved in Indian Parliament attack (2001) and Pulwama attack (2019).  

You can lie and find a narrative you want but the facts and truth will come out one day. I know i am going way off topic but the narrative he is giving cannot be accepted.

The narrative during demonetization was combating terror funding, black money and corruption and what has changed after that, what about the fake calculation and narrative the government used, how many black money was recovered. The economy doomed because of some illiterate taking decisions, many small business shut their door because of the immense loss they had to encounter, any idea about the total loss the tax paying citizens had to encounter 13,000 Crore INR to monetize again, any idea or calculation about the counterfeit notes reduced after demonetization, the statistics says it increased  ::). Any idea how many people died because of the rush and cash crush when no one was able to withdraw their money from the bank and your stupid analogy for the betterment is bullshit and that is the fact. So please do not come up with fake narrative you learn from RSS and BJP camps.

The people of India will adopt, but the government is making things difficult for anyone to invest by using the RBI to shut down business by restricting banks to conduct business with crypto exchanges and i did not see any narrative regarding this, the government says BTCitcoin is a ponzi scheme, so what is your narrative on this subject.


PS:The long response is because of the narrative @Thavash wants to portray and i want to inform the real situation rather than sugar coating that everything is fine and done for the greater good.

Two of the biggest populated countries in the world China and India coming up with their national cryptocurrency and then what happens, they will force everyone to use them  :D. The volume will be crazy high if they force them as almost 40% of the world's population live in those two countries ;D.

Which one correct news about bitcoin transaction in India, last several day I got information India have been legal using bitcoin but why did you give information about India back to banned bitcoin as legal payment transaction now, I think need time how to know bitcoin keep using as legal transaction or not.

Ahh well, that's quite relieving to hear. I quite remember when the rumours came about the ban of crypto in India so many online friends of mine in India got worried as it would hamper some of their business. I hope this would cheer them up a little. This would also go a long way to promote the establishment of crypto related jobs in India

If Indian government legalize crypto currency then it will be a great news for it's public, yes India is the second most populated country in the world and I am sure the transactions and usage will be more aggressive than other countries and there is a big chance for a massive pump if they legalize crypto currency.

They have never banned it and never legalized it, they have denied any cryptocurrency trading directly from bank. The p2p options are always available, there is no illegal charge upon anybody holding the crypto coins,  there is no different income tax law for crypto coins.

This means that they more or less did the same thing as China.

They can say what they want and try to look good but we all know better. They did ban it because if you ban a financial product from the financial sector you are banning it. It's like banning apples from grocery stores and allowing to only buy them in person like from your neighbor or a grower. You technically can still get them but it's much harder.


If they did not want to ban it they wouldn't ban some features of it but let it develop freely.

Reserve bank only stated that the regulated entities cannot offer crypto assets but it no where mentioned about the ban on cryptocurrencies. Also I think, Central Bank and Reserve Bank are two different banks so how could you co-relate them here?

India is the country which is undergoing the legalization process of cryptocurrencies and from several months, we can see the hearings in the Supreme court of India about the circulation of the cryptocurrencies. I do no think that India has arrested anyone until now for using cryptocurrencies or transacting with them. Good news about the legalization of cryptocurrencies should be spread globally so that most of the countries can start supporting the act.

Please read my comment again. I was only saying that there are some articles^[1] suggesting that India is planning to launch their own national cryptocurrency. And yes, just like what China is planning to do and what Venezuela did. I don't know about making it dominant over decentralized crypto such as bitcoin but it will most likely become the legal tender to be accepted by banks and other financial institutions.

---

[1] https://www.livebitcoinnews.com/india-considers-issuing-national-cryptocurrency-despite-anti-bitcoin-stance/

Yes the case is still pending in Supreme court regarding Crypto regulation in India and Indian government gives statement regarding that they are not banned Crypto Curriencies in India but RBI ruled out to all Indian Banks  are not going to deal with any crypto currencies related to business firms so it has affected to stop all crypto exchanges in India. may be you will get once Indian government and RBI both come to conclusion about crypto currency then only  we will get the solution for crypto regulation.

They cant ban it totally since they don't have the authority to do it. Moreover, governments also don't wanna totally quit this market to lose there share. They are trying there best to remain in this market by providing regulations.

Because people don't read. They just spread FUD and hear what they want to here and have no idea about legal issues. Anyway... Since when has banning things ever worked? >.<
Why would you want regulated entities to offer crypto assets anyway? The point of crypto is not to have regulation. Regulation just means someone can control it.



They won't be able to prove who has coins and who does not and that would be a massive waste of public resources. I doubt your average taxpayer is going to be happy with their tax money being spent that way when it could be used to upgrade and improve infrastructure.

I think it never banned and only clarified its negative stance, I don't think it can ban crypto as whole either lol. Because the government bodies are so weak that it can't even fake notes let alone crypto hehe.

Yeah. I read somewhere that Indian central bank didn't issue any regulations on cryptocurrencies yet. They have only banned exchanges for now which have forced Indian population to sell their bitcoins on peer-to-peer network. It is strange decision to be honest. They are letting people to trade bitcoins between them but aren't allowing any exchange to be the intermediary. Hope they resolve the final position soon.

Indian Central Bank has become confusing like the leaders of the country. While Modi is saying thay they haven't discussed anything about NRC, Shah is saying that NRC will be implemented in the whole country. Similarly, RBI is syaing banks not to let people use banking channel for crypto settlement and given free hand to banks to freeze suspected accounts, on the other hand saying it hasn't banned cryptos.

If the traders can't use banking channel to receive cash against cryptos, how they are expected to earn an income!! Things are not moving to positive direction as of now!

It's still a ban if you ask me. They can't completely ban it like you ban drugs because it's impossible to control, so the government won't do it. They'd look weak if they imposed a ban but were unable to control it and people would simply own and trade Bitcoin in person like a contraband. Instead they ban financial sectors from using it which is easier to control and maintain.
I think they don't really understand what they're dealing with here and the ban is the result of some officials laundering money with it 2 or 3 years ago. It sill pass.