Since the cryptocurrency ban in India. trading in this sector has overflowed substantially with a spiked increase in prices. experts feel that traders are taking advantage of the duration (three months) the RBI had given to banks to disable ties with cryptocurrency traders and exchanges.
Right now investors are able to turn rupees into cryptocurrencies. They will later exchange this for other coins. It will be done through private trading platforms (even after RBI’s ban takes place).
“There is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms,” CEO of BuyUcoin Shivam Thakral told to Economic Times. He further elucidated that new investors arrive at such exchanges which existing one receive interest after the drop due to good value. Moreover, they make money as cryptocurrency prices are increasing.
Bitcoin’s price in India is back up to 618,000 rupees. It regained from a low 350,001 rupees after the RBI’s cryptocurrency ban in India announcement. The center’s stand is totally against the use of cryptocurrencies, as it could be invested in illegal financial activities.
Cryptocurrency Ban In India: Government’s Stand
Arun Jaitley on February told to ET that cryptocurrency should be banned as a payment system. But investors hope that the government will overturn the decision. An RBI panel, finance ministry, market regulator and Exchange Board of India are expected to soon give a recommendation on what to do next. According to experts, cryptocurrency traders are expected to continue regardless of the ban.
After implementing the ban on commercial banks from being involved in cryptocurrencies, most trading will likely occur in peer-to-peer networks or social networks. Some traders have already challenged the central bank’s order in court. They have stated that it’s unconstitutional.
Experts have suggested that the cryptocurrency ban in India is not good. It will make money completely out of view for regulators. It enables unlawful transactions to be easier. According to an ET report, lawyers have advised clients to keep their investments and take a “wait and see” approach. Meanwhile, traders and investors are being positive about the outcome.