Published On: Thu, Jul 5th, 2018

RBI’s ban comes into effect on cryptocurrency exchanges in India

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In India, restrictions on bitcoin transactions that have been imposed on cryptocurrency exchanges were effective from Thursday, July 5. After the RBI order, all the Bitcoin exchanges, including Zebpay, have closed the business in rupees.

RBI asks banks to stop services to Bitcoin Exchanges in India

The RBI issued the circular on 5th April and ordered all the banks to stop the services of these Bitcoin exchanges. Zebpay, one of the largest digital exchange of Bitcoin and other virtual currency in India, tweeted that it is closing down the transaction in rupees and its mobile app will not support Bitcoin-rupee transactions. The company had asked its customers to withdraw money a few days ago.

These restrictions mean that no Indian will be able to deposit or withdraw INR from their crypto wallet from any Bitcoin exchange in India. Although users can make deposits in other coins, such a crypto-to-crypto pair trading service will also continue.  Zebpay co-founder Sandeep Goenka tweeted that he is preparing to go to the Supreme Court against the RBI circular.
It is noteworthy that before the RBI ban, the central government had announced in the budget that it will not allow any virtual currency to be introduced due to suspicious transactions. Through fear of unregulated trading, black money flows and tax evasion, virtual currency was being looked down upon. At the same time, the RBI has also indicated signs of bringing its own virtual currency.

RBI had already given warning

Regarding the bitcoin and other crypto currency, the Reserve Bank has been keeping investors in the forefront since 2013. The RBI has said that Virtual Currencies are not recognized in the country and in this case the investor himself will be responsible for the loss of the money. In December the Income Tax Department in the country had also raided several bitcoin exchanges.

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