[2018-05-05] Indian Investors Flock to Trade Crypto Ahead of RBI Ban

[Terraformer]

Investors in India are flocking to trade cryptocurrencies before the ban order by the Reserve Bank of India takes effect. There is a positive sentiment in the local crypto community that the Indian government will not outright ban crypto trading.

Investors Rush to Get Into Crypto

It has been a month since the Reserve Bank of India ordered banks and financial institutions under its control to stop providing services to cryptocurrency exchanges. The central bank has given banks three months to end their relationships with crypto operators. However, ever since the order, cryptocurrency trading volumes in India have surged dramatically.

“Exchange operators, investors, and analysts say people are rushing to take advantage of a three-month window the Reserve Bank of India has given banks to sever ties with cryptocurrency traders and exchanges,” Reuters elaborated, adding:

"Getting in now enables investors to convert rupees into cryptocurrencies, which they can later swap for other coins via private trading platforms even after the central bank’s rules take hold."

Shivam Thakral, CEO of crypto exchange Buyucoin, was quoted saying “new investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher.”

Retail investors believe that “most trading is likely to move to peer-to-peer networks or social applications such as Telegram” after the three month period is up, the news outlet added.

Continue reading >> https://news.bitcoin.com/indian-investors-trade-crypto-rbi-ban/

[jjacob]

It will be interesting to see what happens after the three month period. China shut down it's exchanges, but people moved to peer to peer exchanges. Altcoin trading moved to exchanges abroad. I foresee things moving in a similar direction in India as well.

[stompix]

I don't see  investors "flocking" to buy cryptos.
Zebpay claims to be one of the largest exchanges there and yet it still has only 16 millions $ in daily volume.

It will be interesting to see what happens after the three month period. China shut down it's exchanges, but people moved to peer to peer exchanges. Altcoin trading moved to exchanges abroad. I foresee things moving in a similar direction in India as well.

China left a few open doors for trade, as basically Hong Kong is China and they didn't follow up in the ban as China. But India lacks even the banking infrastructure that would allow people to deal in localbitcoins or to have fiat deposit in western exchanges.

Fortunately, India is just a drop in the ocean in the BTC world, so this "ban" won't affect BTC even a bi.

[Tylev]

On the examples of China and India, we can see whether the government of the country by its prohibitions will force its citizens to refuse to deal with the crypto currency. This will be an interesting practice for all of us on this issue. Many states have already studied the possibility of such prohibitions and stated that this in practice can not be done. If, however, the Indian government does not succeed in banning crypto currency, then perhaps other states will not even try to do it.

[maarx]

The interest of people should come to the government. Its a good move from exchanges to find another solution which is said to be "peer to peer". I am sure Indian government would come up with a positive solution if not leaving the exchange with complete freedom. The interesting fact is, the citizens are more genius than the leader of country.