India fights back RBI’s anti-cryptocurrency policy – A dogmatic approach?

Bitbns, a digital asset exchange has launched a petition which calls for the Reserve Bank of India [RBI] to bring a cryptocurrency-friendly framework and identifies the humbug of the Reserve Bank’s bid for its own digital currency.

Although the move by RBI to regulate banks under them to exit any sort of partnerships with any businesses or persons dealing with cryptocurrencies has emerged as a total outburst, it shows the country has toughened its stance on cryptocurrency acceptance and usage. The petition has outlined a view of RBI’s new policy of stifling innovation around blockchain technology and has garnered more than 19,000 signatures.

The RBI in a statement has issued that in light of the risks, they have decided with an effect that entities which are regulated by RBI shall not do business with any individual or business entities who deal with virtual currencies. Regulated entities who already provide such services are to exit the relationship within a specified time.

RBI has stated that these measures have come into effect as privacy concerns over cryptocurrency’s inability of dealing with money laundering. They have added as the response by the regulators around the world are not uniform and can hamper Anti-Money Laundering [AML] and Financial Action Task Force [FATF] frameworks. This can severely affect the integrity of the market and capital control.

This is followed by the misinterpretation of Government’s regulation speech which caused a panic among the cryptocurrency users in the country and led to a drop of Bitcoin.

Nischal Shetty, CEO of WazirX tweeted:

“US, Japan, South Korea go towards regulating Cryptos so that their country progresses while RBI decides to block Indians from getting involved in the crypto revolution. We need to think progressively, RBI please reconsider this and let’s take a positive step forward”

A Twitterati says:

“It looks like the Central Bank wants to continue to run money scams on the Indian people.”

A cryptocurrency enthusiast says:

“Banks will be banned in the future.they Already have the weapons to fight, the cryptocurrencies will take away their power. Will have to adapt or disappear”

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