Bitcoin prices in India have declined after the Reserve Bank of India ordered that all the banks and financial entities to should refrain from companies or individuals dealing in cryptocurrencies. On the backdrop of a tightened monitoring on dealings in virtual currencies and cryptocurrencies, on of the leading bitcoin exchange has issued a warning to the investors on its website. Bitcoin prices in India has dropped by as much as Rs 40,000 per bitcoin from the weekly high price of Rs 4,87,606 (as on 4 April 2018) to Rs 4,44,740, according to www.coingecko.com. According to a Reuters report, bitcoin prices had plunged to a bottom of Rs 3,50,001 on the crypto-currency exchange Coinome.
Following the escalated watch on the cryptocurrencies by the Reserve Bank of India, Zebpay, a cryptocurrency exchange which facilitates trading in virtual currencies such as bitcoin, ethereum, litecoin and ripple, has issued a warning addressing the inconvenience faced by investors in deposit and withdrawals.
“RBI has recently issued communication about discontinuation of services by RBI regulated entities (banks/payment gateways) for purchase and sale of Bitcoin and other virtual currencies. We remain committed to keeping customer funds and assets secure, and are exploring various options. However, sudden disruption in banking services could affect our ability to service deposits and withdrawals, until banking services are restored. Please keep this risk factor in mind while making your investment decisions,” this message pops up on the home page of Zebpay.com.
Earlier on Thursday this week, the Reserve Bank of India told all the banks and financial institutions to break the ties with persons or entities dealing with digital currencies. On the sidelines on the conclusion of the first bi-monthly monetary policy meeting, BP Kanungo, Deputy Governor, Reserve Bank of India had said that any such institution providing their respective services to the businesses dealing in areas of cryptocurrency has to exit the relationship within three months. Earlier this year, HDFC Bank and Citibank have announced to restrict the purchase of bitcoin using its debit and credit cards.