Many people have various doubts or queries about the recent FBI fiasco. The news that Indian government has put a ban on cryptocurrency made the Indian cryptocurrency market shattered in a matter of few hours. Before getting into answering your questions, let’s first get some things cleared.
- RBI has not yet circulated any detailed guidelines about the banning of cryptocurrencies.
- Most of the news on social media has been through word of mouth and through the speech by the deputy governor of RBI.
- Banks still have a window of 3 months to unwind their positions with exchanges. So, the exchanges still can find some ways to overcome this hurdle.
- RBI is planning to bring their own digital currency. This means that government is thinking about blockchain, and so there are chances they will provide some hopes to the blockchain industry.
- And most importantly, India’s situation seems less severe than China’s, they haven’t ordered exchanges to close, they just prevented banks from transacting with them.
The ban on cryptocurrency answered
Now to answer some popular questions, there are two major questions that are bothering people.
1. Shall we or shall we not transfer our cryptocurrencies into foreign exchanges like Binance from local exchanges like Koinex and Coindelta.
Ans- No, for now, it is not advisable for anyone to transfer their currencies from local exchanges to international exchanges. Reason being, RBI has given a period of three months for banks to withdraw their support from crypto exchanges. And this has ultimately given a window for exchanges to find ways to make the transactions for Indian traders possible. I am pretty sure, Indian exchanges like Coindelta and Zebpay will come up with solutions as soon as possible. But for that to happen, we will have to wait till the government releases the final official circular guidelines for banks and exchanges.
2. If we transfer our cryptos to an International exchange, then how can we withdraw our money from that exchange?
Ans- For now, you have to depend on a system called localbitcoin. Localbitcoin is one of the most feasible option to withdraw your money right now, but it not the safest. This process is extremely risky and can lead to losing all your cryptocurrencies in one go. Apart from this, it has just been a couple of days that RBI announced this news. So the workaround to this problem has not come yet. We are working on finding some concrete ways for Indian traders to trade in fiat currency without much hassle. But there’s nothing much that can be done till the government circulates an official guideline for banks. Also, Binance is coming up with USD transactions soon. Indian traders can monetize this factor as well.
Also, RBI has just prevented banks from transacting with crypto exchanges. So basically the fiat on-ramps are in trouble, and there is no ban on cryptocurrency. For new people who want to buy cryptocurrency with INR, The exchanges are still open, and you can still add funds using UPI (which is how it’s been for the last few months). Once that shuts down, Indians can also make use of services like localbitcoin. Furthermore, it is now emerging that some banks are actually able to circumvent the RBI guidelines and provide services – but this will take some time to be finalised as the second circular hasn’t been issued yet.
So, to conclude it, the only suggestion will be to stay calm, let the FUD settle down, and let the government give an official statement. Till then, don’t make any decisions in a hurry, which in most cases are always less profitable.
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