The Reserved Bank of India (RBI) cryptocurrency ban deadline ended yesterday (July 5, 2018) and from today, all banks are instructed to seize any form of relationship with cryptocurrency exchanges – which means cryptocurrencies will not add even a single rupee in your bank account.
In April, the Reserved Bank of India (RBI) notified all investors and banks about its cryptocurrency ban and provided a buffer of three months to all entities residing in India to end their virtual currency trading before July 5, 2018. The cryptocurrency ban deadline ended yesterday and from today, monetisation of any cryptocurrency will not be possible in India or in any Indian bank as the RBI has strictly prohibited the all banks in the country to stop any commercial relations with any cryptocurrency exchanges across the world.
Perhaps, these are the changes that will occur after the RBI cryptocurrency ban being imposed in India:
No money transfer for cryptocurrency
Buying or selling any cryptocurrency in rupees through any exchange is prohibited and no banks or any other financial organisations will facilitate cryptocurrency trade. If you still hold some cryptocurrencies, you can opt for exchanges who serve peer-to-peer (P2P) services which will only facilitate crypto to crypto trading – no crypto-rupee conversion can be made anymore.
No loans for crypto exchanges
Banks of any other financial organisations will not issue loans to cryptocurrency exchanges or companies after cryptocurrency ban and they will not be allowed to hold a corporate account.
Rise of black market
The cryptocurrency ban implemented is actually on the banks associating with crypto trading, and not on cryptocurrencies – which means, investors and buyers might look out for black market options. Imagine people selling cryptocurrencies on OLX or Snapdeal in exchange of money at much higher prices.
Perhaps, the RBI cryptocurrency ban is not the death of cryptocurrency in India – as the ban is on banks associated with crypto-trading, and not on the virtual currency. Which means, it can still be done through exchanges which provide alternatives like trading crypto for dollars through Paypal – it might turn out costlier, but not that is by no means the end of cryptocurrencies in India.