Crypto News Flash #132 : Reserve Bank Of India Bans The Regulated Entities Like Banks From Dealing In Cryptocurrencies !!
Well, it is a well known fact that India had declared the use of cryptocurrencies as a medium of exchange illegal and prohibited everyone to use Bitcoin or other related cryptocurrencies within economic borders of the nation.
Although, the trading of cryptocurrencies are still legal in India and the Income from cryptocurrencies trading gets treated as the Income from other sources and gets taxed as per the Slab rate in India. But still government is trying and pressurising the legal entities in India not to have any links with cryptocurrencies related entities.
Reserve Bank of India (India's Central Bank) has given 3 months notice to Banks or other entities to unwind their links or business related to cryptocurrencies. But RBI Deputy Governor, BP Kanungo, has said that the government will continue to promote Blockchain technology.
This 3 months notice came after the last 3 warning by RBI to legal entities and general public in last 7-8 months.
Deputy Governor of RBI, Mr. BP Kanungo, said that :
If they (cryptocurrencies) grow beyond a critical size they can endanger financial stability.
Well, after watching the strict banning of cryptocurrencies by China and some potential regulations to be placed on cryptocurrencies by South Korea and Russia, India is also planning to introduce some policies or regulations in order to regulate the use/trading of cryptocurrencies within the country.
These so called regulations, which people are waiting for almost an year, hasn't come yet. But government as well as RBI is looking forward to introduce them as soon as possible.
Let's see what India has for cryptocurrencies in Future.
Thanks for reading ...!!
Is Cryptocurrencies a illegal thing?? But waiting for seeing what India has for it in future..! Thank u for the info bro.. :)
Unfortunately, Indian government is trying to ban cryptocurrencies as soon as possible like China. Let's see what is gonna happen next.
I hope Cashaa's future will be bright. They seem to have everything done properly in accordance with the country's institutions
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Thanks for the information.
I personally feel India could well become a crypto paradise provided government supports crypto rather than demonize by spreading all sort of FUD. The hypocrisy is reflected when they (govt) admire the underlying technology of blockchain but rejects the core it was born from. All they see is illegal things while not understanding that money is being re-defined. Government should educate, support and not freak-out about power of decentralisation.