Banks will Not Allow You Buy Bitcoins Anymore, RBI New Policy Update
Have you looked on to the bitcoin price today ? Wait ! are you a crypto trader ? If yes, there’s a bad news for you. As per new RBI guidelines trading of crypto currency through banks or e-wallets or any other regulated option will not be promoted any more.
Adding updates to new Bi-monthly policy of FY-2018-19, some effective restrictions has been imposed by RBI on all banks ,e-wallets & other regulated entities to not to facilitate any further trade options to any individual or business unit in making bank payments or receiving profits on crypto currencies like bitcoins.
In a statement, RBI stated that trading in virtual currencies is generally done in an unreported format, while such currencies do have the potential to improve and remove the deficiencies of financial system but on the other hand it to have some negative space for investors. While RBI till now neglected the issue keeping in mind the opinion of investors on crypto ban, but now they decided to put a ban on such transactions on grounds of serious issues of money laundering, consumer protection, and market integrity.
Taking in concern of investment practises, RBI has also decided to issue a circular related to their decision in the coming days to disallow all banks and trading units of crypto currency to stop such trades with immediate effect. Since last few months RBI made several addresses to the unintentional earning sources of individuals and business entities from VCs. They cautioned users, traders and dealers of VCs to understand the risk involve with such transactions.
While regulated entities will not be able to transact more in this area, it will close all investment doors for quick gainers and investors to withdraw or reinvest their income further in crypto currencies.
As per statement of an RBI official, the stated move will not only prevent unauthorised holdings but it will also take up scrutiny on financial transactions of all companies and exchanges involved in trading of digital tender. Till then RBI at timely intervals will continue to issue press releases in thought to alarm all investors, brokers entities dealing with VCs to continue their trading business at their own risk after the policy rule update.
“A person will not be able to transfer money from his savings account to his crypto wallet” says, Abizer Diwanji, Head, Financial Services, EY India.
It is even being said by some business experts, that this thought of RBI of taking up fact of crypto currency from Indian market at this time, will make up a clear market for their view of launching a non mine-able coin. Investor would be able to purchase such coin and will get interest on its holding at regular intervals. As more the holdings more will be the interest rate.
RBI take down of crypto currency is being seen as an outcome of advises made by Finance minister in various budget sessions of the year related to crypto currency to not to recognise it as legal tender in the country. While in some other countries like Japan, USA a major growth has been seen in business of VCs after the bitcoin hault , just like India these countries are also working in direction to restrict business of such currencies.