My evening today started with a very bad news- Reserve Bank of India has issued a notice saying that a ban has been imposed on banks to allow their customers to trade cryptocurrencies.
Official statement: “Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time.”
Now, this is a really bad news when you are invested heavily into a bunch of blockchain projects. The Indian government has always seemed confused regarding their stand on cryptocurrency. But when the Income Tax department announce that the cryptocurrency gains will be taxed in India, it looked as if India has finally decided to accept it and regulate it. Now, this latest notice is just like 2016 Demonetisation announcement that our Prime Minister made casually during a speech. The cash in my wallet was announced as worthless paper just like that.
What will happen now?
Ok, now after confusing us for so long at least the government has made it clear that they don't support cryptocurrency. But will this stop cryptocurrency trading? I don't think so. Companies will just shift their base out of India to countries that have friendly policies. Just like Binance did last month when they moved to Malta from Japan. Banks don't need to deal with these companies directly as financial intermediaries with keep the show going.
What am I gonna do?
Well, the initial thought that came to my mind was to exit ASAP. But I have decided to Hodl and maybe buy more haha. I think that banning it has made it more scarce and hence more valuable. Give traders enough time to figure this situation and I am sure they will find several loopholes. The true value of cryptocurrency is that governments can't steal it from you. Try carrying a bar of gold through an airport and you will know. But your entire crypto portfolio is just a click away, wherever you are in the world. Lost your wallet on an overseas trip? No problem when you have binance account haha.
What do you think about this situation?
Now tell me how anyone is going to wthdraw steemit earnings in INR? If RBI doesnt allow anyone to buy bitcoins or other alt coins from Indian Exchanges and they dont allow us to receive any earnings through any exchange either then whats fhe point of holding it back
You can receive your earnings in cryptocurrency but they are restricting converting it to INR through banks. However, there are peer to peer exchanges like localbitcoin.com that won't be affected by this policy. Moreover, I am sure other exchanges will also find a way out soon.
Congratulations @siddharthsharma! You have received a personal award!
Click on the badge to view your Board of Honor.
Congratulations @siddharthsharma! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!