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India’s Central Bank Bans All Crypto-Related Accounts

India’s Central Bank Bans All Crypto-Related Accounts

The Reserve Bank of India had a deadline to ban all cryptocurrency which expired yesterday, July 5th, according to local news outlet The Times of India.

Panjak Jain, a crypto investor, and blockchain worker tweeted that the silver lining behind all this is that the RBI must provide a reason for the banning of all crypto accounts within a week.

RBI announced 4 months ago that it wouldn’t provide financial support for people, organizations, or businesses that invested in cryptocurrencies. Note that this isn’t the same as a blanket ban on crypto in its entirely. The Supreme Court of India then revoked a repeal against RBI’s bannings by 11 businesses all invested in tokens and blockchain development. The Court ruled the date to be set on July 20th for the hearing. They also announced earlier this week not to grant interim relief to those who are affected by the ban.

The deadline yesterday to implement it now means that no Indian citizen can trade, buy, or sell coins on exchanges and are forced to just use basic P2P networks instead. However, crypto-fiat exchanges require marketplace platforms to do so. Companies invested in crypto and blockchain can’t utilize loans from banks, so they’ll have to look elsewhere for loaned capital.

A few companies have already been affected. Zebpay, an Indian crypto exchange, announced on July 4th that it would freeze all Indian rupee deposits before the ban was active. This changes the entire blockchain economy of India, as they were a major cog in the system for citizens to easily trade and invest in cryptos.

Long-time reader of crypto. One of the first graduating classes of Blockchain and Future Trends. Writer, journalist, and newbie technical analysis price speculator. Learning about the development of cryptocurrency and blockchain technology around the world is my job. ICOs, whitepapers, and cryptoculture are my things.

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