Recently the Reserve Bank of India has announced that India’s financial institution will not deal with cryptocurrency anymore. In a statement, the RBI stated that looking at the risk associated with cryptocurrency the ban 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.”
Very soon the RBI will announce a specific data to close down all the cryptocurrency transaction for those companies who are providing cryptocurrency services. When the price of Bitcoin climbed up above 1,300 percent in 2017, it caught the attention. In December 2017, the value of bitcoin was around $20,000. As per the data recorded on Thursday, the cryptocurrency was trading at around $6,887. As per the report, many cryptocurrencies are not endorsed by any central government. Every country has their own rules and regulations for cryptocurrencies. Apart from this, the Government of India doesn’t permit the use of Bitcoin and other cryptocurrencies.
Previously, the government had informed about the risks regarding cryptocurrency trading. The cryptocurrency also harmed consumer protection, market integrity and lead to money laundering. Recently, India’s finance minister also stated that the government had planned to eliminate the use of various crypto-assets in financing illegitimate activities or as part of the payment system.
Also Read: Cryptocurrencies Have Very Uncertain Future
As per the report derived from a national survey, in just 17 months, it has recorded $3.5 billion worth of cryptocurrencies transactions done by around tens of thousands of people. Well, now the income tax department of India has sent notice to all of them. The statement given by the RBI is all about to strengthen financial market regulation in India. Previously the RBI was more lenient toward blockchain. It is the technology that supports cryptocurrencies. Now, it needs to be improved.