India and RBI on cryptocurrency
April 11, 2018 8:10 am,
Cryptocurrency has taken a toll all over the world, be it the US, UK, Russia or China. But when it comes to India, things are still topsy-turvy. India is a developing nation and has brought herself up to the virtual world. India is catching up upon the technological world but in the current scenario of cryptocurrency, there are high rounds of deceit and confusion. Bitcoins made its entry in India and the Modi government made clear about its decision on bitcoins.
Some Indians who have invested in the crypto world did face challenges and the Reserve Bank of India (RBI) has been issuing caution warnings to the community about the legal and customer protection setbacks. Inspite of knowing the exposed nature of the virtual currency, RBI has noticed the sector growing all due to the rise of the value of the cryptocurrency.
This still led to the emergence of an Indian cryptocurrency exchange called Coindelta. Coindelta has launched new features with an integration with Mobikwik (a mobile wallet). The exchange as explained in details the functions of blockchains and how it works. It is building a system that would work the analytics, data and market indicators that are essential for the working of cryptocurrencies. Followed by the press release of RBI, it acknowledges the potentials of blockchain in improvising the efficiency of the financial system.
However, it did point out the obvious risks involved in the virtual world like money laundering, customer protection etc. RBI also informed entities will be precluded from providing any services related to cryptocurrencies to any individuals or business entities. Under Section 35A of the Banking Regulation Act, 1949, the RBI can issue directions for the public interest. To summarize such matters. RBI has put a blanket of restrictions on the banks to deal with all the business entities dealing in the virtual currency.