Crypto community’s diverse reactions to Indian govt ban
Some exchanges are leaving, others are looking for loopholes while one launched a new crypto-to-crypto trading service that it insists is legal
Indian investors are mulling last week’s announcement by the Reserve Bank of India that regulated banks and finance companies sever links with businesses or individuals dealing in crypto-currencies.
News site DNA India is reporting that many of the big crypto players are simply going to move their operations out of India. The major crypto exchanges are considering the same while some, the site said, are mulling the feasibility of opening new domestic currency accounts with non-RBI entities.
The newspaper Mint, meanwhile, is advising investors to take the three-month window that the Reserve Bank of India has given before implementing the ban.
“If you want to redeem your crypto assets in rupees into your bank account, then this is the chance,” Mint said. “After three months, you will have to trade in crypto assets or sell through other channels.”
“New investors,” concluded Mint pragmatically, “should stay away.”
But that is the exact opposite to advice being given by new Indian cryptocurrency exchange, CoinDCX, which this week, despite the ban, launched its new Bitcoin and Ethereum exchange.
Because the service is crypto-to-crypto only, the exchange argues that it does not touch any RBI regulated entities, so it complies with all Indian “laws and regulations.”
“People can legally deposit and trade their crypto-currencies in Bitcoin and Ethereum markets safely and securely,” CoinDCX announced.
Which means it will be interesting to watch those that try to dance around last week’s ban, by either arguing they are legally using non-RBI entities or by claiming their particular type of trade does not come under an RBI remit.
Time will show if they have been very brave or incredibly naive.