Even though Reserve Bank of India has banned transactions in cryptocurrency via banks or e-wallets in April, digital currency investors in India are optimistic that such an action would not affect its trading future in the country.
Even though Reserve Bank of India has banned transactions in cryptocurrency via banks or e-wallets in April, digital currency investors in India are optimistic that such an action would not affect its trading future in the country. Just a month after RBI banned cryptocurrency transactions, trading volumes have surged dramatically alongside a sharp rally in prices, Reuters reported. In order to take advantage of a three-month window central bank had given to banks to cut off ties with cryptocurrency traders and exchanges, exchange operators, investors and analysts claim that investors are taking utmost advantage of the time period, Reuters reported.
“There is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms,” Reuters reported citing Shivam Thakral, chief executive of BuyUcoin, a cryptocurrency exchange. The central bank’s cryptocurrency ban order has also been challenged in the court citing constitutional issues by some of the investors.
Reuters also reported some of the unidentified analysts saying that RBI’s objective to push out formal banking system may make illicit transaction easier as the money will then move out of its watch.
“New investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher,” Shivam Thakral, chief executive of BuyUcoin said. Prices of the volatile bitcoin in India are back up to 618,000 rupees ($9,270), recovering from a low of 350,001 rupees after the central bank’s announcement in early April.