The Reserve Bank of India’s (RBI) recent directive to block all banks from facilitating cryptocurrency businesses hasn’t stopped Indian crypto enthusiasts from investing in the burgeoning space. Many have condemned RBI’s decision as authoritarian — an indirect way to cut the flow of investment into the ecosystem.
Crypto Traders Move to Foreign Exchanges
Reserve Bank of India’s clampdown on the crypto market has not yet adversely affected most Indian traders as many have moved their digital assets out of local exchanges. However, some have indeed been directly affected by the unfavorable conditions developed by the RBI.
Accordingly, crypto investors hope that the national institution backpedals on its stringent decisions for the crypto industry in the country. For now, all financial institutions regulated by the RBI have been given three months to square their business partnerships with cryptocurrency businesses and cut all strings with the space.
As reported in Business Standard, Aniket Patel, a student and a bitcoin investor, stated:
“I do not use any local exchanges to conduct my transactions anyway, so I am not affected by the ban but I do have some holdings in my father’s account on a local exchange and those we will move to a private wallet within three months.”
That’s the attitude of many in India for now.
RBI’s ‘Irrational’ Decision
According to Business Standard findings, most traders have shown a strong disapproval of RBI’s decisions and are in no mood to cease trading cryptocurrencies. A petition was also filed on Change.org to push the RBI to reverse its directives. The petition calls the RBI’s policies as “irrational” and has already reached over 42,000 signatures.
Raj Chowdhury, Managing Director at HashCash Consultants, noted:
“The move will stifle innovation in the country and companies will look to move to greener pastures. The government will also move on crucial tax money that they could have earned by regulating the market.”
Several other industry participants have echoed similar sentiments. Digital currencies are not limited by regulatory framework, and there are international platforms that allow to buy and sell cryptocurrencies. Even though the government is trying to suppress the growth of the crypto market, they mainly seem to be suppressing economic growth in general.
Should the RBI reverse or ease its directive? Share your views in the comments section.
Images via YouTube, Business Standard