[05-04-2018] Reserve Bank of India (RBI) Bans Indian Banks

[bitzamp.com]

The Reserve Bank of India (RBI) on Thursday announced that banks should stop dealing with the entities that deal in digital currencies, such as bitcoins.
India practically banned cryptocurrencies such as bitcoin with the Reserve Bank of India, which prevents regulated entities from rendering services to any individual or company that operates in digital currencies. The deputy governor of RBI, BP Kanungo, said at a press conference.

The regulator, however, decided to promote the use of blockchain, a public ledger that serves as the backbone of bitcoin, in financial services to improve transparency and improve inclusion.
All affiliated banks have been asked not to have any business relationship with entities dealing in virtual currencies. This may mean the end of the road for those who own bitcoin or

Read More: https://bitzamp.com/reserve-bank-of-india-rbi-bans-indian-banks-from-dealing-with-digital-currencies/

[bambazamba]

This is totally correct . India has "practically" banned bitcoin and there is no going back now .
All the short term users are just panicking right now and the 3 months time seems too less right now . India is just following the footsteps of China a has seriously brought such a big disappointment to all the bitcoin users who are not involved in any illegal activity . It is just associated with a "ponzi scheme " and this misunderstanding is bringing big problems for the bitcoin users in India from months .

[onrise]

More or less the way things where happening and government giving cautionary notice couple of times the direction was clear of the government. Only thing may be they where waiting to find out what is the best solution and how can they make the best use of it. Now officially they have come out and given the statement.

[BinomNewton]

Hello from a russian thread and also sorry for invalid English

Could someone clarify if such an article is a fake or not?

As far as I can understand there are a lot of rich folks live in India so there are a lot of BTC holders which should panic and sell their BTC to avoid to get illegal/criminal. So then we have to see the huge panic-sale in charts, but there was not such before or after the article has been published. How is this possible if the article is not a fake?

Thanks in advance for your answers.

[AZlN0]

Hello from a russian thread and also sorry for invalid English

Could someone clarify if such an article is a fake or not?

As far as I can understand there are a lot of rich folks live in India so there are a lot of BTC holders which should panic and sell their BTC to avoid to get illegal/criminal. So then we have to see the huge panic-sale in charts, but there was not such before or after the article has been published. How is this possible if the article is not a fake?

Thanks in advance for your answers.

most likely this is true, if you believe RBC, but it will not affect traders and does not mean a ban on digital currencies

More on RBC:
https://www.rbc.ru/crypto/news/5ac6351a9a7947b31617f20b

[aso118]

This unfortunately seems to be true. Mainstream media houses have reported it as well.
https://m.economictimes.com/wealth/personal-finance-news/your-bank-will-not-allow-you-to-buy-bitcoins-anymore/articleshow/63627123.cms
The RBI now perceives cryptocurrencies as a threat. By banning banks from providing services to exchanges, it is driving all bitcoin trading underground

[Kakmakr]

Hello from a russian thread and also sorry for invalid English

Could someone clarify if such an article is a fake or not?

As far as I can understand there are a lot of rich folks live in India so there are a lot of BTC holders which should panic and sell their BTC to avoid to get illegal/criminal. So then we have to see the huge panic-sale in charts, but there was not such before or after the article has been published. How is this possible if the article is not a fake?

Thanks in advance for your answers.

They do not have to panic at all. Those bitcoins might not be welcome in their country, but there are many countries where those bitcoins can be used. They can still trade bitcoins for cash with people they trust within their community and they can pay for services and goods in other countries where their coins are legal tender.

When these countries ban Bitcoin, they push that wealth onto other countries where Bitcoin is legal. Bye Bye, tax income for India and Hello tax income and tourism for the Bitcoin friendly countries. ^smile^

[AltEvangelist]

And now Indian banks have started sending out mails to customers restricting them from investing in cryptocurrencies. In the end the mail says "Thank you for your cooperation". Nobody asked for my opinion or if I wanted to cooperate in the first place and now they are thanking us for this unsought "cooperation". It is disappointing that the Indian establishment could not appreciate the positives of cryptocurrencies and just referred to them as "ponzi schemes" without giving much thought. I hope RBI comes round soon from this misunderstanding.

There's an ongoing Change.org petition that will be sent to RBI with 10,000 signatures: https://www.change.org/p/rbi-make-india-at-the-forefront-of-blockchain-applications-revolution

[DeadCoin]

The Reserve Bank of India (RBI) on Thursday announced that banks should stop dealing with the entities that deal in digital currencies, such as bitcoins.
India practically banned cryptocurrencies such as bitcoin with the Reserve Bank of India, which prevents regulated entities from rendering services to any individual or company that operates in digital currencies. The deputy governor of RBI, BP Kanungo, said at a press conference.

The regulator, however, decided to promote the use of blockchain, a public ledger that serves as the backbone of bitcoin, in financial services to improve transparency and improve inclusion.
All affiliated banks have been asked not to have any business relationship with entities dealing in virtual currencies. This may mean the end of the road for those who own bitcoin or

Read More: https://bitzamp.com/reserve-bank-of-india-rbi-bans-indian-banks-from-dealing-with-digital-currencies/

It has just said that any banks or any entities tied up with RBI should not entertain or deal with crypto currencies. This is the focus behind. But RBI has not announced that Bitcoin or any other crypto currencies are banned. Now banks have nothing to do with cryptos. They do not lend money and get crypto coins purchased.We have only the exchanges like Zepay and etc. These exchanges are asked to pay tax to their earnings. I don't think any issue would arise against bitcoin or other altcoins from India.

[jseverson]

It has just said that any banks or any entities tied up with RBI should not entertain or deal with crypto currencies. This is the focus behind. But RBI has not announced that Bitcoin or any other crypto currencies are banned. Now banks have nothing to do with cryptos. They do not lend money and get crypto coins purchased.We have only the exchanges like Zepay and etc. These exchanges are asked to pay tax to their earnings. I don't think any issue would arise against bitcoin or other altcoins from India.

The problem is that this effectively kills of exchanges. They need a bank account to run their business, and they won't have access to that anymore. It's easy to say that Bitcoin will still thrive, but you can expect the casual holders to dump. This is similar to China's exchange ban, which crippled the Chinese market.

I know India isn't a very significant player as of the moment, but this sucks for future adoption. I hope they reverse their position sometime in the future.

[ASHLIUSZ]

I don't think this is a serious issue, but a great panic wave is prevailing around the user community from India. It is to be noted that until the government is corrupt there is no need of fear for statements coming out of government authorities. In particular there are lots of people getting into large scale mining with the backing of politicians within the country, so I don't think this is gonna be effective.

[Kloosterboer]

I think that it is a temporary phenomenon. This country needs some fresh brains to understand the potential of crypto market and to create smart regulations, then RBI will be fine with banks which deal with crypto

[Kevinbind]

Again sad news, tired of it. Crypto winter is not coming to an end soon, so community should be ready to hear gloomy stuff like this

[danielschwerzer]

It was made so in order to find a proper solution that will solve problems connected to cryptocurrencies\
They just bhave bought more time to think

[MoonJeina]

It is such a shock . India was emerging as one of the most important hub for bitcoin and other crypto currencies and such sudden ban has affected million of investors in India who had their money on the digital currencies . That is such a shame that a country like India which is constantly making efforts to develop in terms of technology is taking a step back from the digital currencies . These delusional decisions of government always confuse me.

[Irvine Scottish]

Oh my god, how long will it last =(
Almost no positive news, negative and negative again

[Alex077]

The Reserve Bank of India (RBI) on Thursday announced that banks should stop dealing with the entities that deal in digital currencies, such as bitcoins.
India practically banned cryptocurrencies such as bitcoin with the Reserve Bank of India, which prevents regulated entities from rendering services to any individual or company that operates in digital currencies. The deputy governor of RBI, BP Kanungo, said at a press conference.

This's really bad news for the entire cryptocurrency ecosystem: because India gave a lot of hope for all crypto enthusiasts in the world because they have a considerable population and pretty big turnovers, that can definitely increase in the future.

[veleten]

again the same principle:if we do not know how to control something,we rather ban it
sad it happened to India,they could have been one of the most important countries in the region for the crypta
if the goverment decided to legalise it instead,actually,there were rumours that bitcoin would be legalised
and now this sad news,well the countries that are late to the party will be standing aside watching others
IMHO prohibitions achieve nothing,just open more floodgate for blackmarket and criminal activity around bitcoin