India: Is RBI's Clampdown On Cryptocurrency Working?
If you have followed my blogs over the past few months I've been writing about the changes in the cryptocurrency space in India. I've mentioned how many exchanges will setup P2P modules well before it happened. I've also written about the possibility where RBI someday will feel that it's regressive mandate to ban banking services to cryptocurrency exchanges may backfire.
What we know now for a fact is that many cryptocurrency exchange startups have deployed P2P modules to tackle this issue. Some exchanges such as Instashift.io have registered themselves in Estonia to avoid any hassles with the regulators in India. Infact this allows them to cater to a global audience and grow faster.
RBI mandated a ban because it wanted to protect consumer interest. However, there's so many provision in our existing laws that provides protection to users using registered exchanges. I've mentioned a few in my post earlier today.
These very exchanges have been utilising strict KYC measures and maintaining data of their users. Infact they have been willing to comply with the authorities as well. However, regulators paid no heed to advice.
Inspite of all fair provisions in place RBI's rule has forced everyone to move into P2P which circumvents the mandate leaving RBI feeling helpless. Many new startup entities in this space are moving abroad. There's nothing that RBI can do to stop this.
If RBI hadn't made such a ruckus over this issue, today we could've been a growing market with greater accountability even without regulations at press time. This kind of oversight has only caused RBI more headaches.
Today, the cryptocurrency market in India which had taken a bad hit is continuing to thrive albeit slowly after facing the FUD created by RBI. Exchanges are starting to see better liquidity and volumes as people are starting to come back. The markets are also slowly beginning to change course. It's only a matter of time that even regulators will be forced to come up with fair regulations.
India isn't China, you can't simply outlaw cryptos without a backlash from the public!
You can also read my post on RBI's Annual Report here.
If you are keen on trading in cryptocurrencies then you can simply use InstaShift, Coindelta, WazirX, PocketBits, Giottus, Koinex amongst couple others. There's no need to worry about regulations or lack of it.
However, stay tuned for more news from this sector especially as we get close to Sept, 11 D-Day.
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
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Hi, dear sir @firepower it's worth read and I already resteemed this post, yes sometimes I missed your blogs but I am eagerly waiting for some marvellous news like this regarding our cryptocurrencies.
I hope one day we will win.
Thank you dear sir.
God Bless you.
Banning crypto affairs isn't the way forword.. The world is moving in that direction and any government that doesn't adopt crypto the the fullest will have itself to blame in the future..
Thank you @firepower for your wonderful updates on the latest happenings in India.
By this step our government is loosing many taxes. As news come up may be RBI step back his decision. I am really think, why finance department is not come up with any solution on crypto regulation. Or is this issue is not enough big to be talk as election agenda.
I remember your words from the previous post. 'shooting themselves in the foot' is precisely what they are seemingly doing at the moment. From the the very beginning of the issue the central bank has shown shortsightedness in this matter.
There is literally no normal legal mechanism to stop P2P transactions and even more daring is the fact that projects and exchanges can simply move out of the country. But I do have hope that sooner or later saner minds would prevail and the situation might just me rectified.
Well said @firepower though bank support is restricted but still there are many options out there which we can use to trade. I agree that not crypto trade volume started increasing after p2p introduced. Hope to see some positive news coming on 11 sep..Fingers crossed. ...
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Though the final decision of the govt have yet to come,but our transactions are going on fairly.So it will never stop if we have the hundred percent hope and faith on the decentralized system.Govt shuts one door,our system opens the others.Its a beautiful game and we all are the smart players ,who have the efficiency to score good and wins the game.Good luck dear for forthcoming situations and for the expected positive decisions of govt.Have a great day dear.
@firepower, Good to see that you are closely analysing the updates regrading Crypto in India.
Yes, Crypto Sphere should be stayed in India to attain growth and that is because as i said it will going to give many opportunities which were never existed.
And yes, in the situation where there are many hurdles for an particular exchange, then for sure they will think about the movement and will going to plan for the situate in different country.
Let's hope that Regulators will understand the need of the Crypto and will going to showcase the Green Signal.
Wishing you an great day and stay blessed. 🙂