India Bans All Cryptocurrency Services

india cryptocurrency mining

Do not expect the good people of India to invest in bitcoin or other digital currency soon.

The Economic Times reports that the Asian country issued a blanket ban through its Reserve bank. Cryptocurrency trading is now banned in India.

Residents in India will no longer be allowed to buy virtual currency through e-wallets and banks because the Reserve Bank of India banned it with immediate effect. Both business entities and individuals can no longer deal with or settle virtual currencies.

Even though the country poses as a cryptocurrency friendly nation, investing in cryptocurrency is prohibited. This means that digital assets can no longer be sold by banks. It also implies that debit cards cannot be used for purchasing cryptocurrency. Wallets cannot also be used in transferring assets.

The Bank issued a statement with guidance to follow and stated that the bank has decided to stop dealing with or to provide such services to business entities and individuals or settling virtual currencies. All regulated entities that provide such services were advised to withdraw within a short time.

BP Kanungo, the governor of the RBI at a press conference today suggested that digital currency is dangerous to India’s monetary system’s stability.

The regulatory response to this internationally is not uniform. Many feel that digital currencies can undermine the Anti-money Laundering and the Financial Action Task Force agenda and impact capital control and market integrity negatively.

When they grow beyond a certain size, they can impact financial stability.

The attack on digital currencies by centralized financial bodies continue under the guise of protecting financiers from volatility continues.

A week ago, one of the largest banks in Canada blocked purchases with the digital currency. This move followed a similar ban by large banks in the United States like JP Morgan.

Regardless of this news, cryptocurrencies have remained stable for the past 24 hours.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.


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