India Bans Bitcoin Wallets, Bank Funding, All Cryptocurrency Services

Submitted by Dade Murphy of BlockCubed

Don’t expect India’s 1.3 billion residents to be investing in Bitcoin or other virtual currencies any time soon.

According to a report from the Economic Times, the Reserve Bank of India has issued a blanket ban on all cryptocurrency trading.

You will not be able to buy cryptocurrency via banks or e-wallets etc. in India anymore as Reserve Bank of India (RBI) has banned them with immediate effect from “dealing with or providing services to any individuals or business entities dealing with or settling virtual currencies”.

Though the country says it understand the need for supporting blockchain related technologies, the exchange of virtual currencies is now prohibited on every level, including the purchase of digital assets via bank accounts or debit cards, as well as the utilization of wallets to transfer assets.

The RBI issued a statement on the matter with guidance to follow:

“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately”

RBI governor BP Kanungo, at a press conference Thursday, suggested that Bitcoin is dangerous to the stability of India’s monetary system:

Internationally, while the regulatory response to these tokens are not uniform, it is universally felt that they can seriously undermine the AML (anti-money laundering) and FATF (Financial Action Task Force) framework, adversely impact market integrity and capital control…

And if they grow beyond a critical size, they can endanger financial stability as well.

The attack on cryptocurrencies by centralized financial institutions in the name of “protecting investors from volatility” continues.

Last week one of Canada’s largest banks blocked cryptocurrency purchases, a move that followed similar bans in the United States by large banks like JP Morgan.

Despite the news, cryptos are roughly unchanged in the past 24 hours, although as discussed earlier this week, only after suffering their worst quarter on record.

Comments

FireBrander Joe Davola Thu, 04/05/2018 - 10:45 Permalink

India is an in progress experiment of a "cash-less society".

2016/17 "Prime Minister Modi bans 85% of the currency in circulation".

"Aadhaar is a biometric database based on a 12-digit digital identity, authenticated by finger prints and retina scans"

"India Stack is a series of secured and connected systems that allow people to store and share personal data such as addresses, bank statements, employment records, and tax filings.

This is all accessed, and can be shared, via Aadhaar."

http://www.businessinsider.com/india-might-be-first-cashless-society-20…

In reply to by Joe Davola

Coinista HisNameIsRP Thu, 04/05/2018 - 11:44 Permalink

Just jealous, loser, unintelligent, no-coiners.  Every one of them.  All people of reasonable intelligence understand that the people of India, many running around babbling with dots on their foreheads, have very poor math skills.  The complex, high-order, math of Bitcoin scares them as well as their cows roaming the streets while people starve to death.

This is just one more excellent indicator that Bitcoin is going to the MOON!!!

BUY BITCOIN!!! Losers.

In reply to by HisNameIsRP

withglee Coinista Thu, 04/05/2018 - 16:25 Permalink

" The complex, high-order, math of Bitcoin scares them as well as their cows roaming the streets while people starve to death. "

Doesn't scare the hell out of me. I just haven't found it coherently specified (yes, I read the initial white paper and there are no answers in it) yet. I suppose I could read the computer code and document it.

I know there's the simple test that if the first four bits of some number are all zeros, that means a new block can be created. But how about you hit me with that complex, high-order math that gets me to that point ... or even describe the basic concept.

In reply to by Coinista

dussasr Erek Thu, 04/05/2018 - 11:28 Permalink

Indian Rupee going full retard Bolivar style apparently.  I guess they decided to avoid the Prisoner's (fiat) Dilemma and just commit suicide instead.  Even the Chinese were smart enough to not ban crypto entirely and just throw up roadblocks to maintain the illusion of a lack of currency controls.

In reply to by Erek

E5 mtl4 Thu, 04/05/2018 - 13:16 Permalink

Quite literally.

India is headed for the nuclear option.

Once they are completely on a centralized electronic money system Pakistan will be able to destroy them with one bomb.

 

 

Too many people are myopically focused on the effects of an EMP attack on the USA.  Do they ignore the effect of such an attack on India?  Markets are connected and the flood of immigrants to the USA because they have "citizen" family will be disastrous.  But truly the civil upheaval will be the fact that rural India remained unaffected while the elite go belly up.

In reply to by mtl4

Yukon Cornholius ZKnight Thu, 04/05/2018 - 12:12 Permalink

Uh, no. Hitler actually did a lot to help (((them))) grow and dominate. Hiring Hjalmar Schacht as his finance minister for example. Or sending all the gold he ransacked from Austria, Czechoslovakia, Belgium, the Netherlands etc, to the Schacht-created Bank for International Settlements or the Rothschild-owned Bank of England. He also ordered several million good-hearted, hard working, productive Germans to smash their heads against several million good-hearted, hard working, productive Russian heads, to the benefit of the City of London and assholes like Churchill, Morgenthau, Lord Cherwell, etc etc etc. 

Hitler’s “actions” were also the crescendo of the Jewish State question. In other words, Hitler was an art-fag lackey to much more powerful men.

In reply to by ZKnight

chubbar Joe Davola Thu, 04/05/2018 - 13:10 Permalink

Since we are on the subject of currency and banning, a quick ditty about my experience a week ago. I belong to a small credit union and I wire transfer somewhat frequently, sometimes overseas. I've not done so internationally for over a year but last week I had an occasion to do an international wire transfer.

Everything was normal right up until I started getting questions about the purpose of the wire transfer. That's the first time that question was ever asked. I asked what business it was of them to inquire and the response was that the gov't is now requiring them to ask. I again inquired why that would be the business of the gov't, how I spent my money. That kind of dumbfounded the sheeple on the other end, first time it was ever asked, apparently. I stated that if I was doing something illegal I'd likely lie about it either way. The question was asked whether this was to purchase crytocurrency? That was likely the genesis of the line of inquiry to begin with.

The takeaway is that we are likely months away from complete capital controls if this is a trend, so if someone has to get some money offshore, better to do it sooner than later.

In reply to by Joe Davola