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RBI Regulated Organisations Barred From All Cryptocurrency-Related Services

"We have decided to ring-fence the RBI regulated entities from the risks of dealing with virtual currencies. These operators are required to stop having a business relationship with the entities dealing with virtual currencies forthwith and unwind the existing relationships within three months"
                                                         - BP Kanungo 
                                                           (Deputy Governor, RBI)



After issuing premonitory warnings RBI finally doomed cryptocurrency exchanges by banning all RBI regulated organisations to provide services to cryptocurrency-related entities form 5th July, 2018

As per press circular released by RBI dated on 6th april, 2018, It (RBI) won't be dealing or providing any services to organisations dealing with cryptocurrencies.

This action might be the result of $726 Million Gujarat bitcoin scam, which came to limelight after suspected involvement of Raj Kundra (british businessman and husband of shilpa shetty) is now gradually inclining towards politics. Strongest opposition party in state of  Gujarat (i.e. Congress) in a press conference claimed involvement of leaders of ruling party (i.e. BJP) from state as well as center.

Ever since 6th april, 2018 five petition were filled against RBI on this issue. The supreme court ordered to have a common hearing on all these cases against RBI with one exception. The petition filled by IAMAI (Internet and Mobile Association of India) was heard on 3rd july, 2018. As of now supreme court has refused to lift ban by RBI. Next hearing is scheduled on 20th July,2018. 

As a result of RBI's Crackdown cryptocurrency exchange such as belfrics has stopped Indian operation while on the other hand cryptocurrency exchanges such as UNOCOIN are considering crypto to crypto based exchange. Wazirx and Zebpay has already launched its crypto to crypto exchange.

With crypto to crypto method (or in other words P2P exchange) exchanges will not be dependent on RBI regulated entities. Still hard time awaits for exchanges as crypto to crypto method is still struggling to gain threshold in Indian market.

In spite, this crackdown RBI might be considering to launch its very own digital currency. In a circular published by RBI it has stated  "Rapid changes in the landscape of the payments industry along with factors such as emergence of private digital tokens and the rising costs of managing fiat paper/metallic money have led central banks around the world to explore the option of introducing fiat digital currencies. While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency. The Report will be submitted by end-June 2018."
  


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