India bans crypto-currency trades

RBI cracks down on digital currencies plans own cryptocurrency | Video

The Reserve Bank of India has issued an order preventing banks and all other financial entities in India from dealing with cryptocurrencies, whether it is individuals or companies holding such digital assets and trying to park them with these institutions.

Technically, neither the RBI nor the government has banned digital currencies.

The central bank, however, clarifies that it will continue to promote the use of blockchain in financial services for strengthening transparency and improving inclusion.

The RBI's announcement has left crypto-currency exchanges in India in turmoil.

It is hard to guess right now. nonetheless, this buzz did impact the price of Bitcoin because after the news released recently, the price of Bitcoin went down from $7400 to $5400, which is a huge loss for those who are looking forward to a brighter future with the help of this coin. "A circular in this regard is being issued separately", the RBI said.

Bitcoin recently traded around $6,600, near its lows this year, according to research site Coindesk.

The Reserve Bank of India (RBI), following the bi-monthly Monetary Policy Statement on Thursday, said it would, with immediate effect, ban all regulated entities from dealing with or providing services to any individual or business dealing with or settling virtual currencies.

Industry experts say that RBI's decision will encourage hawala trading and keep bitcoin trading out of the purview of income tax authorities, reports ET.

Although the country hasn't made it illegal to own crypto, per se, India bans Bitcoin and digital currency by making it impossible to buy with fiat.

RBI is concerned about the fact that some of the payment system operators and their outsourcing partners are partly storing their data outside the country. "In the long run keeping the above in light the digital currencies which have a certain usefulness towards their utility/usage will be the ones that will have a shot at the silverline and more prone to acceptability".

"We recognise that blockchain technology or the distributed ledger technology that lies beneath the virtual currencies has a potential benefit for financial inclusion and enhancing the efficiency of the financial system".

Mumbai:RBI has set up a panel to explore the introduction of its own "fiat" digital currency. However, virtual currencies raise concerns of consumer protection, market integrity and money laundering, among others, it said. By, which would be easily stabilized, and would even red introducing a state-backed currency, RBI would be able to reduce the costs of printing paper money.

Related news:

Hot News

isis-killer-beheading-video-story-top WWE's WrestleMania 34 Digital Tie-Ins: John Cena Snapchat Lens, AR Match Preview
Apr 08, 2018 - 01:04
It appears as if "The Big Dog" Roman Reigns will go in to Suplex City and leave with the promotions coveted Universal Title. Finn Balor - This is another match that could steal the show with the victor probably moving over to Smackdown .

isis-killer-beheading-video-story-top Augusta National to host it's first women's event
Apr 07, 2018 - 13:26
Just to keep that clean. "I'm quite happy to be on the clock every hole of my life, it doesn't affect me". He said: "We were put on the clock not once, but twice".

isis-killer-beheading-video-story-top NY attorney general investigates after police kill black man holding metal pipe
Apr 07, 2018 - 13:25
Near the end of the video , Vassell can be seen approaching an intersection and pointing the object toward the street. He has no issue with violence. "I just want everyone to know that I want justice for Saheed", she told the crowd.

isis-killer-beheading-video-story-top California natural disaster rattles baby eagles in treetop nest
Apr 07, 2018 - 13:23
A 5.3 magnitude natural disaster shook southern California this week, the strongest quake to rumble the area in many years. The adult eagle eventually returns to the nest to check on the shaken babies.

isis-killer-beheading-video-story-top Donald Trump denies knowledge of lawyer's payment to porn star
Apr 06, 2018 - 03:56
Asked why his lawyer Michael Cohen made the payment, Mr Trump said: "You'll have to ask Michael". Michael is my attorney. "You'll have to ask Michael", Trump said.

isis-killer-beheading-video-story-top Yemen Houthi rebels launch 'revenge attack' on Saudi oil tanker
Apr 05, 2018 - 00:46
Saudi Arabia accuses Iran of supplying missiles to the Houthis, who have taken over the capital Sanaa and other parts of Yemen. Saudi Arabia is leading a mostly Arab military coalition to fight Iran-backed Houthi rebels in Yemen since March 2015.

isis-killer-beheading-video-story-top Trade war with China was lost many years ago: Donald Trump
Apr 05, 2018 - 00:44
Donald Trump claimed the U.S. was not in a trade war with China, but that he had nothing to lose with a $500bn trade deficit. Household goods makers, retailers and homebuilders led the way while technology companies reversed some early losses.

Trump said not to be target of investigation
Apr 05, 2018 - 00:44
Trump himself reportedly wants to sit down with Mueller's staff, and his legal team is divided over whether it's a good idea. He is also looking at whether the President has tried to obstruct justice by attempting to impede the investigation.

isis-killer-beheading-video-story-top Far Cry 5 is the fastest selling title in franchise history
Apr 05, 2018 - 00:43
The Gold edition ($89.99) includes all Deluxe Edition bonus content as well as Season Pass access and day 1 MBP sniper rifle. You'll receive Silver Bars the more progress you make.

isis-killer-beheading-video-story-top 4 killed in Marine helicopter crash in California
Apr 05, 2018 - 00:42
There were no reports of injuries to personnel on the ground or damage to the infrastructure at the airport. In 2016, 12 Marines were killed after two of the Super Stallions collided mid-air off the coast of Hawaii.

isis-killer-beheading-video-story-top Insomniac's Spider-Man PS4 Release Date To Be Announced Tomorrow
Apr 05, 2018 - 00:41
In the meantime, get your pre-orders in for Marvel's Spider-Man at PlayStation Store or a friendly retailer online or near you. Along with the Punk Spider costume, there is also the Spider-Man Noir costume that was revealed in GameInformer .

isis-killer-beheading-video-story-top Snowiest start to April in over 30 years for NYC
Apr 05, 2018 - 00:40
Friday , people in the Northeast could face a "quick burst of snow" that could change into rain during the morning commute. Friday will bring a decent chance of snow, likely before noon, along with north wind gusts as high as 25 miles per hour .

isis-killer-beheading-video-story-top Meghan's dad 'terrified' of her wedding day
Apr 04, 2018 - 01:11
Kensington Palace said the designs will reflect the wild, natural landscapes from which numerous plants will be drawn. They stayed with her as one of her favourite flowers, so it was important to include them", he added.

isis-killer-beheading-video-story-top U.S. keen to work with Egypt's re-elected Sisi
Apr 04, 2018 - 01:08
One day later, another serious contender, rights lawyer Khaled Ali withdrew, saying he and his supporters were being intimidated. Officials said that if any such incidents took place they were not state-sponsored and extremely limited.

isis-killer-beheading-video-story-top After Violence Erupts In Kashmir, Disputed Region Shutters Storefronts In Strike
Apr 04, 2018 - 01:07
These reports suggested that tourists were injured in stone-pelting in Awantipora, and the Dalgate area in the city of Srinagar . Hurriyet leaders who challenge India's sovereignty over Kashmir have called for a shutdown on Monday against the killings.