Quote from: msadikot53 on July 11, 2018, 08:49:42 PM

Things are looking bad for crypto currencies in India. RBI, that is the federal bank in India, issued a circular asking banks and other financial institutions to stop doing business or providing financial services to those dealing in crypto currencies. In a statement on April 5, the RBI had said virtual currencies, also referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.

The move came after it was observed that the several companies had started dealing in over thousands of digital currencies which, the government and the RBI claim, had no intrinsic value - therefore leaving the investors at risk. The RBI's move was an attempt to ring-fence regulated entities from the risks associated with crypto currencies. Since December 2013, the RBI had issued four warnings against bitcoin and other crypto-currencies.

The Supreme Court is scheduled to hear the petition against the RBI circular on July 20 but had agreed for an early hearing on a separate petition filed by Internet and Mobile Association of India (IAMAI), which considers the crypto currency exchanges as its members.

Besides, the Central government is already in process of formulating a law to regulate digital currency business in India. So all in all, it is looking very grim for now.

I hope RBI understands that "Investor's protect" system should be put rules and regulations, a carpet ban wont do any good to the system as crypto market is affecting the GDP right now.