On the 5th of April, the Reserve Bank of India [RBI] declared cryptocurrency unconventional and targeted all regulatory bodies to discontinue transactions with individuals and businesses dealing in cryptocurrencies. This ban prevents banks from dealing with crypto-companies.
RBI Deputy Governor B.P. Kanungo at a press conference acknowledges:
“Bitcoins and its brethren were getting international attention for quite some time for their speculative value. These tokens are not regulated uniformly at an international level. It is feared that these digitalized currencies can adversely impact the market integrity and capital controls.”
He further says:
“The growth of these virtual currencies can threaten the financial stability of the country as well. RBI regulated that entities will have to unwind any existing business relationship with those dealing with VCs within three months.”
Kali Digital Ecosystems had planned to launch a crypto-exchange platform, Coinrecoil in the month of August. The company claims that it has taken sizeable investments but after the RBI’s decision the company will collapse.
The company also labeled this as discrimination as, under Article 301 of the Indian Constitution and guarantees the freedom of trade and commerce throughout India. They also stated that this is due to the RBI’s mistake in defining the term ‘Cryptocurrency’. This, in turn, makes it ambiguous in the Indian market. Reportedly, the company also claimed that GST- Goods and Services Tax Councils is also a reason for this uncertainty as they have ignored to embark tax laws particular to cryptocurrency.
Anirudh Rastogi, the Managing Partner at the TRA law firm claims:
“The full ban on cryptocurrency would only bring more problems. Imposing a bar would make tracing cryptocurrency deals even harder for the government. Ban of cryptocurrencies in India is not permanent as the largest economies of the world are giving it legitimacy.”
Rahul Raj commented on Twitter saying:
“This knee-jerk move by the RBI has adversely impacted the industry, but the directive has also given financial institutions a time frame to settle all the pending transactions with the exchanges. So, effectively, this time allotted can be used by traders to wisely transact on their crypto-assets. He is also apprehensive that this move by the RBI might lure traders to do under the table dealings.
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Facebook’s Libra hit by more accusations, Balaji Srinivasan on BTC investment and more
Crypto News – 24 June – Facebook’s Libra hit by more accusations, Balaji Srinivasan on BTC investment and more
— AMBCrypto (@CryptoAmb) June 24, 2019
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