You must be living under a rock if by now you don’t know that RBI has given three months to Banks to wind up their businesses with anyone dealing in cryptocurrencies. The Crypto-community is about 1.5 million strong in India as per CNBC TV18’s Shereen Bhan, but we estimate it to be over 3 Million, as Zebpay alone has 3 Million accounts created on their exchange.
As with every news from RBI goes, there was a lot of negativity, a lot of misunderstanding and somewhat anger in the community about their decision. To clarify the same, when Shereen Bhan asked the secretary of Economic Affairs Mr. Subhash Chandra, if “Crypto is a dead asset for traders now?”, the secretary gave the most controversial answer to the question hinting at P2P exchanges and OTC trading of Crypto, even with cash.
Here’s the answer:
“No, they (traders) can still trade amongst themselves. That is possible. They can transfer. That is what their system is. They can transfer by trading, but they can’t bring it into the system by using the, they can also use cash and other means but not the banking system and the credit cards”
Here’s the Video released by the news channel on their twitter:
Cryptocurrencies were always demonetised, says @SecretaryDEA while speaking to @ShereenBhan at the #CNBCTV18IBLA. Adds that there is ‘no ban on trade of crypto assets but it can’t enter via banking channels’ @Manisha3005 pic.twitter.com/stPjyrYMGL
— CNBC-TV18 News (@CNBCTV18News) April 6, 2018
RBI’s Decision will lead to Unwarranted transactions and Tax Evasion
We have always maintained our stance that exchanges are possibly the most legal way of trading cryptocurrency. The exchange currently hold your Aadhaar and PAN details which makes it easy for regulators to know if you are evading taxes on your profits.
However, with banks shutting their support for exchanges, if nothing happens for another three months, the exchanges will have to close shop. This will lead to an increase in OTC trading on P2P exchanges like Localbitcoins, Instashift, Remitano and so on.
Not to mention in the words of the secretary himself, people will start trading in Cash, and evading taxes altogether.
The Hashtag #RBICantStopMe, #RBIPolicy #RBI are trending in the crypto community as the users show their dissatisfaction with the decision. The Crypto Community is coming together and finding ways to fight back against RBI’s move by Petitions, gathering signatures for PIL, by writing to RBI and continually opposing the same on social media.
#RBICantStopMe from buying and selling cryptocurrency is what the traders are saying.
Most likely the Secretary will retract his statement, but till he does that. Do share this article with everyone. It will show that many of the policy makers possibly have no clue what Cryptocurrency is.
Update: The headline was updated to clarify the comment was on the question if Crypto is a dead asset
Responses From Exchanges about RBI’s Move to Stop banks from Serving Crypto Businesses
Banks should unwind relationship with Crypto Businesses in Three Months: RBI
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