RBI's latest stand on Virtual Currencies

[akhjob]

Statement on Developmental and Regulatory Policies

12. Central Bank Digital Currency

Rapid changes in the landscape of the payments industry along with factors such as emergence of private digital tokens and the rising costs of managing fiat paper/metallic money have led central banks around the world to explore the option of introducing fiat digital currencies. While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency. The Report will be submitted by end-June 2018.

13. Ring-fencing regulated entities from virtual currencies

Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.

Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately.

Source: https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=43574

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[reliable]

The final verdict has come which was long due from the government/banks. So they have given 3 months finally as to unwind all the position for the banks and get the business going as regular other than crypto. Let us see how it will effect the prices on the crypto due to this decision.

[Marma Kalari]

Does that mean that the exchanges operating in India will be shut down because the banks comes under RBI and if they cannot get the help of the banking system, how people are able to trade and move money, it is a highly unfortunate situation and i am hoping they will change their stance when the major economies come to a standard regulation.

[kryptogunner]

Does that mean that the exchanges operating in India will be shut down because the banks comes under RBI and if they cannot get the help of the banking system, how people are able to trade and move money, it is a highly unfortunate situation and i am hoping they will change their stance when the major economies come to a standard regulation.

This is pretty unfortunate to say the least on the part of crypto enthusiasts. Menawhile, RBI has regulated the banks which comes under its ambit however nothing has been said by Fin Min/ Min. of Commerce/ corporate affairs regarding the status of crypto exchanges. This not only affects the investments made into them by investors but also jeopardize the decision of RBI to regulate the banks.

If at all they intend to regulate cryptos, they must draft a clear policy covering all the stakeholders and not just banks. Currently, its not legal and not illegal either. This stance is never good for any sector. May be inside they admit crypto is a force to be reckoned but lacks the willingness/ resources to accept it.

 

[rangnatht]

भारतीय सरकार को यह समझना होगा कि अगर वह रोजगार पैदा नहीं कर सकते हैं तो कम से कम जो लोग थोडा बहुत क्रिप्टोकरेंसी के जरिए कमा रहे हैं उनके पेट पर लात मत मारे। मुझे तो लगता है कि सरकार में ऐसा कोई बन्दा ही नहीं है जो कि ब्लॉकचैन टेक्नोलॉजी के बारे में सरकार को समझा सके। आरबीआई के इस निर्णय से भारत में ब्लैक मार्केट को बढ़ावा ही मिलेगा और कुछ नहीं।।। आरबीआई के इस निर्णय से पता नहीं कितने लोगों का नुकसान हुआ है।।। आशा करता हूं कि आरबीआई अपने निर्णय को बदले और लोगों की भावनाओं और परेशानीयों को समझे।।।। फिलहाल मैं निवेशकों को यह सलाह दूँगा कि घबराने की जरूरत नहीं है।।। और भी बहुत रास्ते है अगर बैक साथ न दें तो भी ।।।।

[kishornayak]

Bitcoins are not illegal in India, but investing and getting payments will be difficult.
You cannot use any indian credit cards or debit cards to invest.
Getting money also not possible to indian bank accounts.
Any solution Guys?

[sushimittee]

Fear not... India will not ban cryptos.. They might experiment with creating a new currecny but wil fail eventually

[frankforty]

RBI will chain its stand... India will be the mecca for cryptos because of high population numbers there, and ofcourse poverty too

[paulwdc]

Well, I think India will do exactly what other countries will do - wether it is do start thier own country crypto or accept bitcoin or ban bitcoin... India's decision will never be in isolation in the long term..

[sathyamg]

How long is the wait?? As every day there is a fake news / rumors about bitcoin future in india.  Any ideas on the latest updates.  Currently Zebpay today has said in a blog that it will try and refund all the money.