In the midst of all the speculations, another update has cropped out for the cryptocurrency. The Reserve Bank of India has declared a ban on all the cryptocurrency accounts immediately. The governmental bodies have taken the step without studying and identifying the structure of this domain. In a query filed against this issue by a lawyer in the Right to Information act has revealed a detailed view of the entire matter.
It seems that the Indian governing bodies have been warning the citizens before investing in cryptocurrencies right from 2013. The trend of virtual currency stated way back in 2009, however, it slowly spread to all the continents in a short span of time. RBI has issues two public warnings until now against cryptocurrency as reported by Bitcoin Magazine.
RBI Banning Cryptocurrency Exchanges
Earlier in April this year, RBI published a notice stating that they have banned the banks from dealing or trading with any kind of virtual currencies. In addition to this B.P. Kanungo, RBI Deputy Governor added that they had given a grace period of 3 months for operative business which was dealing in crypto space.
The idea behind was to make banking safer for customers by avoiding money laundering and frauds. Indeed, there has been a dilemma over the security aspect of cryptocurrency and several developing nations are yet to legalize them. Unexpectedly, RBI revealed that their decision to ban the banking transaction of virtual currency was not supported by study or independent research.
It seems that the government is taking random decisions on such big domain without considering all the aspects. Also, this is not this case just with Indian Banks. The same as had happened in past with the government of Russia and Japan. However, they later softened their stances on cryptocurrency.
In other words, they may look it up the new crypto space as information technology threat. But, there are many advantages linked to their actual execution and right application.
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