Your bank will not allow you to buy bitcoins anymore

In India, RBI bans the Cryptocurrency through banks or e-wallets etc. This was an immediate effect of “dealing with or providing services to any individuals or business entities dealing with or settling virtual currencies”.

RBI when announced the first bi-monthy monetary policy for FY 2018-2019, simultaneously announced that any entity that has been regulated by them for example e-wallets, banks etc. this shall not deal with or give services to any business entity or individuals for buying or selling of Cryptoverse like bitcoins.

If e-wallets, banks and other entities regulated by RBI wont be permitted to facilitate purchase or sale of Cryptoverse,

It is obvious that people might not be able to do transactions from their bank accounts to their Cryptoverse trading wallets.

One of the Financial service head said, “A person will not be able to transfer money from his savings account to his cryptowallet.”

The central bank of India had been continuously cautioning the holders, users, traders of virtual currencies, which includes Bitcoins, about the diverse risk factors associated in dealing with such virtual currencies.

In one of the statement issued by RBI says that technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as Cryptoverse and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others.

In view of the associated risks, 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. RBI will be issuing circular in this regard for further details.

Recently, many banks have banned their customers from buying and selling of cryptocurrencies. Citi Bank said to its customers through in email to its customers has said that credit and debit cards cannot be used to purchase cryptocurrencies. It has been reported that RBI has warned banks about cryptocurrencies in January, telling them to step up scrutiny of financial transactions by companies and exchanges involved in the trade of bitcoins and similar digital tender.