Clarify: India Hasn’t Banned Bitcoin Yet
As India, Japan, Pakistan and other countries amid regulatory crackdown on cryptocurrency, bitcoin plunges to $6526 USD on Friday. However, there are lots of misconception of the announcement made by the Reserve Bank of India (RBI). It was reported that, instead of banning all bitcoin trading, the RBI actually strength its own regulatory strategy for cryptocurrency.
Last Thursday (April 5th), the Indian Central Bank issued a statement prohibiting banks (and other institutions under the laws and regulations of the RBI) from providing digital currency trading services. For institutions have already involved in, there is a 3-month deadline for them to “quit”, otherwise, they could no longer be a “partner” of the RBI.
This news creates fear an panic in the Indian cryptocurrency market, the price of bitcoin once fell to a low of 350,000 rupees ($5392 USD) after the RBI’s announcement was issued and the international market price was $6,617 USD at that time. However, according to Unocoin, things are actually not too bad at present. There is no ban on bitcoin and cryptocurrencies. The RBI haven’t identified bitcoin as an illegal currency and no funds has bee frozen until now. Their business would resume as normal and users could use the platform as usual.
Before the statement, the Indian government had already issued risk warnings on relevant trading activities. The announcement launched on Thursday can be seen as India government’s effort to strength the regulatory policies in their financial market.
Although the RBI’s statement put a lot of people in an alarming situation, exchanges can always looking for new banking partners from overseas and it would not lead to a devastating blow to the cryptocurrency trading market in India though some regulatory actions would come up in the near future.
After the major decline, bitcoin price started an upside move and traded above $7,000 USD on the late Saturday evening. Although the price declined once again toward the $6,500 level, the current price is at a solid $6,900.