India Bans Crypto Currencies

[Vann]

Banks were banned from processing cryptocurrency transactions.  That's fine, banks probably wouldn't know what they were doing anyways and it would lead to all sorts of problems.

India didn't ban crypto.  They are just preventing problems that may come from ignorant banks trying to things they shouldn't be doing anyway.  Is coinbase a bank?  Nope.  

Though they did NOT ban Crypto currency, in that it's not illegal to posses, mining or individual transactions, from the sound of it they did more than just ban Crypto transactions. The government banned banks from even setting up accounts for any business or individual dealing in Crypto. Some banks in the US are also doing similar by closing the accounts of businesses involved in crypto. It stems from the lack of regulation and KYC/AML oversight.

If Crypto is going to grow to incorporate into the existing financial structure, then it MUST deal with those issues before it can be adopted as a mainstream financial option.

[dirgayeah]

In a shock decision today, RBI - the regulatory monetory authority of India barred all banks from having any association with individuals or businesses dealing with crypto.
Banks have been told to exit any such association within 3 months, and the local exhanges already see prices in freefall.

Sigh. Crypto just cant catch a break this year. I hope 2018 just ends already.

Still there's no official statement if the RBI will banning a whole of crypto. So in case they want to stop, but they still want to learn it (blockchain). Digital exchange of india still do a petition right now. Many startup of india are using blockchain for developing their concept.  and that's why they are not worried about this because they already do a research before this problem coming

[gameboy366]

If Reserve Bank of India actually develops a crypto, I think that will be a very good news for cryptocurrencies as a whole. They have access to best minds in the world and enough funds. Maybe they can solve the current limitations and problems of cryptocurrencies.

[Suslived]

INCREDIBLE INDIAA.. What a joke.

While i feel the same way as probably the whole crypto community does because it sucks and RBI sucks, this is probably the wrong board to be posting this. I'd rather we keep discussions here about bitmain's ASIC being bricked to shit.

[chup]

Crypto currencies can't be "banned". Only crypto currencies relation with fiat could be "banned" or "regulated". Local bitcoins, Open bazaar and similar decentralized exchanges/markets will always exist.

[coin163]

In a shock decision today, RBI - the regulatory monetory authority of India barred all banks from having any association with individuals or businesses dealing with crypto.
Banks have been told to exit any such association within 3 months, and the local exhanges already see prices in freefall.

Sigh. Crypto just cant catch a break this year. I hope 2018 just ends already.

that's just FUD. Goverment has been working on restrincting accounts of exchanges since 6 months now. the are launching their own shitcoin, which is wh they are tring to curb the use of bitcoin and other cryptocurrency

[grendel25]

Banks were banned from processing cryptocurrency transactions.  That's fine, banks probably wouldn't know what they were doing anyways and it would lead to all sorts of problems.

India didn't ban crypto.  They are just preventing problems that may come from ignorant banks trying to things they shouldn't be doing anyway.  Is coinbase a bank?  Nope.  

Though they did NOT ban Crypto currency, in that it's not illegal to posses, mining or individual transactions, from the sound of it they did more than just ban Crypto transactions. The government banned banks from even setting up accounts for any business or individual dealing in Crypto. Some banks in the US are also doing similar by closing the accounts of businesses involved in crypto. It stems from the lack of regulation and KYC/AML oversight.

If Crypto is going to grow to incorporate into the existing financial structure, then it MUST deal with those issues before it can be adopted as a mainstream financial option.

Agreed and I have first hand experience with a bank refusing to open a business account for me because it had to do with cryptocurrency.  It is frustrating but it won't stop cryptocurrency.  I think we probably agree on that. 

I'm not so sure we 100% agree on everything.  For example, I could argue that bitcoin already is mainstream because of the massive infrastructure and eCommerce support.  Sort of a rabbit hole... but relates to the insignificance of India or any nation-state influence: Let's consider the "value" of bitcoin.  A lot of folks say there is no value in bitcoin but let's talk about the infrastructure (tangible) and eCommerce suppport (intangible).  Often times the intangibles are just as important as the tangibles.  How much do all the bitcoin ATMs, banks, businesses...etc come in for evaluation?  Again, it can be argued that such assets can't be compared as with other businesses because of accounting differences.  And that's fine but there is still value there even if it can not be liquidated for fiat if bitcoin were to go belly up.  But the intangible value of utility is what makes it fly and what makes the tangibles really worth anything.  Let's focus on value one more time.  If someone said I'll sell you any of the online gambling sites grossing thousands daily... well, there's value.

Sure, this is more a topic for regulations and at the same time we are talking about regulations that would squash net neutrality (whatever that is--I mean...eye of the beholder stuff really) and ultimately who wouldn't want a free internet with unregulated markets?  What if there were decentralized law enforcement?  Like a code for good behavior and real justice for real criminals?  The stake would be higher for blackhats.

so many rabbit holes  saawwwyyyyeeee

[Claudyah]

Regulators in various countries around the world are now focusing on the virtual currency because of its very dynamic price movement and the various suspicious activities associated with it. Because the virtual currency is not protected or supervised by the government, some authorities are concerned that virtual currency will be used for criminal activities such as money laundering. In India alone, the growth of virtual currency users is quite rapid. Reportedly, there are currently hundreds of thousands of users of virtual currency in the country.

[gameboy366]

Regulators in various countries around the world are now focusing on the virtual currency because of its very dynamic price movement and the various suspicious activities associated with it. Because the virtual currency is not protected or supervised by the government, some authorities are concerned that virtual currency will be used for criminal activities such as money laundering. In India alone, the growth of virtual currency users is quite rapid. Reportedly, there are currently hundreds of thousands of users of virtual currency in the country.

In a country like India, the numbers are probably in millions.

[Baoo]

Honestly, the era of cryptocurrency has led to financial or economic losses in many countries, including India and the biggest affected (negatively) is banks (FIAT) and the popularity of digital currencies is constantly evolving because of their advantages over FIAT. Certainly, in India many are using it. That's why the government of this country banned crytocurrencies.

Furthermore, I do not think this ban will continue for a long time, especially,  if crypto will continue to evolve. and I expect that in the near future, India and other countries will recognize Bitcoin and cryptocurrencies in general.

[FTrader]

It's not a really ban, its a recommendation, no one can really ban cryptos.