Contrary to some earlier reports, there is no Bitcoin/Cryptocurrency ban in India, at least not yet.
The other day a few news stories came out saying that India would be banning cryptocurrencies.
Ones like this one:
However, if you really read in to exactly what is being done here, you can see that it isn't an outright ban of bitcoin and cryptocurrencies at all.
What is it then?
It more has to do with separating local regulated banks from the crypto industry.
The wording being more along the lines of this:
The RBI has announced that they will be ending the relationship between its own banks and any user or corporation dealing with cryptocurrencies.
More can be found here:
https://www.newsbtc.com/2018/04/07/no-india-not-banned-bitcoin-trading-government-confirms/
That sounds like a ban on first glance, but it just means that regulated banks can no longer be involved in the space.
For the banks that are currently servicing cryptocurrency companies/exchanges, a big deadline looms ahead.
The RBI has given them 3 months to exit the space or they will no longer be considered a partner of the RBI.
That may not seem like great news, and it's not, but it definitely does not mean crypto is banned in the region.
Not great news, but not the end of the world.
Another thing to keep in mind is that even if some of these banks cease their support of crypto related companies, these companies can always look outside of the country for support.
Exchanges, for example, could always look outside India for banking partners.
It's not entirely clear how many exchanges will be affected by the RBIs newest stance, but it certainly is not as bad as some news outlets made it sound.
At least not yet.
What happens going forward is anyone's guess in regards to future regulations, but it will certainly be worth keeping an eye on over the next 3 months to see how many banks ultimately exit the cryptocurrency space.
But as of now, bitcoin trading has not been banned in India, despite what some headlines may have you believe.
Stay informed my friends.
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