From July 6th, 2018, onwards banks are not allowed to do any Indian rupees transactions meant for crypto exchange.
Reserve bank of India has given clear instructions to the banks, Stop providing services to any kind of firms or individuals who deal with cryptocurrency(Bitcoin, Ripple, Steller).
Block all transactions used for Crypto Exchange
From July 6th, 2018 onwards banks are not allowed to clear any kind of transaction meant for crypto exchange. Selling or buying cryptocurrency using an online platform. Exchanges that allow users to buy and sell virtual currencies through bank accounts will have to stop doing that.
Big loss to the Crypto Firms
Yes, it is a big loss for the crypto exchange companies, who provide online trading on cryptocurrencies.
- So many users have already withdrawn the money before the RBI deadlines.
- People stopped doing trading on cryptocurrency since nobody wants to block their money.
- Because of the uncertainty people losing interest in playing with cryptocurrency.
Companies are sending emails, doing an announcement on websites uploading multiple notifications, asking users to withdraw money from the portal before 6th July 2018.
Some of the users have already withdrawn the money, few people have still some hopes.
Both Unocoin and Zebpay admitted there has been a significant decrease in the number of new customers joining the crypto exchanges, given the uncertainty.
Supreme court hearing on July 20th, 2018
As per the crypto companies, business will be temporarily down till the supreme court hearing on 20th July 2018. “We are waiting for the court’s decision on July 20,”
Where Indian blockchain committee head, Mr. Ajeet Khurana hopes the Finance Ministry will provide clarity on this.
“The limited regulator (RBI) can do a limited action; the Ministry of Finance is the only one that has to take the view on cryptocurrencies,” he said. “Our expectation isn’t from anyone else, except the Finance Ministry.”
Peer-To-Peer Trade lifesaver for crypto companies
Anyone who has studied worked, or done business overseas has probably come across the problem of how to best change and send money abroad. Banks and brokers usually charge several percents of the total amount exchanged as well as a transfer fee. Now, a new wave of Internet-based, peer-to-peer foreign exchange service companies is cutting banks (and their fees) out of the exchange. Through an online P2P platform, individuals can find and safely exchange currency with individuals in other countries at much lower costs. Most online P2P companies claim to provide up to 90 percent cost saving to clients on international exchange and transfer fee.
I think companies like Koinex and WazirX are banking on peer-to-peer trade without using banking channels.
Koinex too announced the launch of Loop peer-to-peer network from July. It offers a blockchain-based escrow to store bitcoins till the seller confirms payments.
There is nothing illegal to facilitate peer-to-peer transactions as the RBI has only asked banks to withdraw support from all the cryptocurrency exchanges, said Abhishek Rastogi, the partner at law firm Khaitan & Co. “Outside the exchange, transactions can happen. It is legal.”
But Unocoin and Zebpay, the two largest exchanges in India, are not optimistic about the peer-to-peer model though. “We are not in favor of the P2P model as it is fraught with risks,” said Khurana. “There is the issue of volatility and also there is also counterparty risk. People will buy bitcoins and will only pay when the prices go up.”
Suggestions from so many people in India “something is better than nothing“
If you have bought in lakhs and now it has become in chillers, then I think no use of withdrawing your money. better to think of some other approach.
- Transfer your cryptocurrencies to some reliable international firm.
- Let’s wait for sometime and hope, something good turn up in the Indian market.
- Deependra is a Senior Developer with Microsoft technologies, currently working with Opteamix India business private solution. In My Free time, I write blogs and make technical youtube videos. Having the good understanding of Service-oriented architect, Designing microservices using domain driven design.