Deputy RBI governor, B.P. Kanungo announced on 5th April 2018, that private entities like banks should withdraw their support to cryptocurrency companies. The official news said that regulated entities such as banks and non-banking financial companies must have no links to individual or companies related to cryptocurrencies.
Effect on National Market
This news created havoc in Indian crypto market. Cryptocurrencies dipped by nearly 20-30 percent in a matter of few hours. People sold their portfolios in losses further stumbling down the crypto market. Bitcoin dropped down to 3 lakhs INR, Ripple dropped down to Rs. 25 and Ethereum came down as low as Rs. 21,000.
People expressed their outrage on twitter as well. Many people and companies expressed their outrage on twitter as well. Furthermore, many people and companies expressed their concern on various social media platforms.
Crypto banned by RBI today.Major Crash. How Will Ripple go ahead in India?😶😒
— PRIYAM BAJPAI (@PriyamBajpai22) April 5, 2018
RESERVE BANK OF INDIA HAS STOPPED BANKS TO ACCEPT TRANSACTION FROM INDIAN CRYPTOCURRENCY EXCHANGES .
— LEARN TO EARN (@LEARNTOEARN99) April 5, 2018
People also motivated other cryptocurrency traders by
India: Just got off the phone with a counterpart in India. Any regulated bank/institution may not provide services to and any crypto “dealer”. This move is designed to eliminate exchanges and infrastructure in the country. Trading and holding is not illegal.
— Ran NeuNer (@cryptomanran) April 5, 2018
However, even though a major outrage was caused in the Indian market, the news didn’t affect the International market on a large scale. Also, the price of cryptocurrencies remained fairly stable on the International market.
$XRP supporters from INDIA
I just read that the Reserve Bank of India has instructed all banks to end any banking relationships with Crypto exchanges?
Your XRP is safe with you, as long as you have your secret key.
It’s also not banned, however INR/XRP liquidity will be harder pic.twitter.com/CkX7GshYJy
— Dr. T (@XRPTrump) April 5, 2018
However, one can note that the government has not yet released any official paper regarding the ban on cryptocurrency.
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