Yesterday, the Reserve Bank of India (RBI) issued a notice to all their registered enterprises refraining them from trading with anyone who deals in cryptocurrencies. A strict deadline of three months has also been set by the RBI for termination of all deals taking place through cryptocurrencies in their notice.
However, the facts contained in that notice are strongly misinterpreted which led to cause FUD among the cryptocurrency traders in the country. The notice only mentioned the fact that from now onwards enterprises and other entities registered with the RBI won’t be able to deal money in terms of cryptocurrencies nor they’ll be able to keep any relation with entities dealing in cryptocurrencies. This actually means that our Indian banks won’t be facilitating monetary movements for entities dealing in cryptocurrencies.
Clearly, there’s nothing mentioned about banning Bitcoin and other cryptocurrencies in India in that notice.
The debate on the legality of cryptocurrencies in the country has been going on for quite some time now as the Indian Government is still unable to formulate a strong law regarding the usability and trade of cryptocurrencies in India.
The recent notice by the RBI can be assumed as a warning and not a full crackdown as it won’t have much effect on the banks which currently do not provide any sort of service for cryptocurrencies. For the time being a person can easily use third-party service such as Payment Gateways to deposit or withdraw money from cryptocurrency exchanges which support direct bank transfers, even though it’s not a permanent solution.
This RBI notice is just reiterating the policy that has been there regarding cryptocurrencies in India since long back, so there’s nothing to worry about as of now and stop the FUD that has been spreading among the all the cryptocurrency traders’ of the country via various mediums.