The Indian cryptocurrency market is in for a disappointment. The Reserve Bank of India prohibited banks from permitting people to exchange money from their bank account into Bitcoin wallet.
Individuals will be enabled to facilitate transfer money from any bank account in India or make any other cryptocurrency payment exchange if banks, e-wallets and other financial entities operated by RBI are banned from dealing in cryptocurrencies. This means they will have to resort to other means to make transfers in cash or else they will have to operate undercover.
Coming in immediate effect on Thursday, the RBI prohibited Bitcoin.
India has very little interest in cryptos, hence bitcoin has dropped by merely 2percent and this is possible as a result of the new ban. Cryptocurrencies are most popular in China, South Korea, Singapore, Japan and the U.S. market.
Speculators have been waiting for a new stance, but they had to deal with what is referred to as “mediocre coins from mediocre startups.” Something new needs to be invented in the market in the wake of the previous year’ run-in with Bitcoin and other major cryptos such as Ether.
China has maintained its restrictions on Bitcoin transfers and initial coin offerings (ICO). Even though India is not a huge fan, it goes to show the struggle the industry is faced with. This is holding back temporal investors.
How does a new startup enter the ICO market if India is restricting Bitcoin transactions? This is a very recent undertaking, hence there has been no response so far. However, from the look of things, the RBI has really hit bitcoin and crypto really hard.
Several nations favor to control cryptos instead of hampering them.
Not too long ago, Australia released new crypto exchange controls. Seoul is trying out its own cryptocurrency. Ethereum has recently increased following the Central Bank of Russia suggested that a suggested payment network would be developed based on Ethereum.