After months of court appearances, online petitions and wide debate, the (RBI) Reserve Bank of India’s anti-crypto ruling comes into play today (5th July 2018), meaning that from now on, the face of the cryptocurrency landscape in India is about to change significantly.
Investors won’t back down and of course, campaigners will still continue to fight this ruling but for now at least, until this decision has been overturned, cryptocurrency in India might never be the same again.
What does this mean?
Firstly, traders will no longer be able to swap crypto for FIAT via an exchange. In order to continue operations, some exchanges are switching to a P2P set up that will allow traders to trade cryptocurrencies for other cryptocurrencies, however there will be no way for people in India to legally exchange these currencies for FIAT. The only way this will be possible is via black market routes which are of course illegal and risky. As we know, this is the sort of risk that the RBI are going to foster by creating these new rulings.
Banks and lenders are no longer able to provide loans to cryptocurrency companies and start-ups, even if they have full registered business accounts with the bank. This will make it much harder for crypto-brands to gain an initial investment through which they can start-up and get the ball rolling.
The move from direct exchange to P2P means that traders in India will now be subject to higher fees and premium exchange rates due to the peers setting the prices. An increase in fees is expected as cryptocurrency is soon to become a luxury commodity in India by the looks of it.
Finally, investors are now at risk of having their assets lost in wallets. If investors haven’t already moved their FIAT conversions from their wallets, they could very well get stuck, meaning that investors could lose out.
You can see the full report for yourself, here- https://timesofindia.indiatimes.com/business/india-business/from-today-bitcoin-will-not-add-even-a-rupee-to-your-bank-balance/articleshow/64868308.cms
As mentioned, this isn’t the end. The community in India will stand up against this and frankly, we can only see the RBI’s ruling questioned further up the legal system as time goes on. Sadly though, this is the case during the present day and is something that the community in India are going to have to get used to for the time being.