HYDERABAD: In the wake of Reserve Bank of India’s (RBI) tough stance on cryptocurrencies, exchanges, investors and other stakeholders dealing in cryptocurrency in India may look towards foreign shores. Though several exchanges and investors have been wary over regulatory uncertainties over the past two to three months and have been preparing to face an untoward policy change, they were caught unawares that RBI would so abruptly come up with such a harsh decision.
“We are carefully evaluating the impact of RBI’s decision and seeking legal opinion. Anyhow, keeping in view the uncertainties over regulation of cryptocurrencies in India, we had recently got incorporated in Australia, which has a clear policy on regulating digital currencies. More Indian crypto exchanges and traders might also see moving to other countries as a viable option in the coming days,” said Hesham Rehman, CEO and co-founder of Bitxoxo, speaking to The New Indian Express.
While several banks have already been discouraging buying cryptocurrencies using its accounts and severing their relationship with crypto exchanges, RBI’s latest statement has made it official creating fear and outrage among crypto currency enthusiasts.
Moving to other nations is expected to give crypto exchanges a better chance for survival in the wake of an unfavourable environment in India.
“RBI’s decision on crypto currencies is unfortunate. Before coming up with such a blanket ban, it should have at least given time for the investors to exit by selling their crypto assets. Central bank should have created an atmosphere, where the impact of its decision does not spread fear among investors and exchanges. There are no proven instances of cryptocurrency aiding illegal activities, and the debilitating environment created for cryptocurrencies in India will only force Indian investors and exchanges look towards other countries for trading in bitcoin and other cryptocurrencies,” said Ritesh Modi, Blockchain expert and author.
Meanwhile, Blockchain and Cryptocurrency Committee, which was formed with the aim of dispelling fears about cryptocurrency and bringing transparency to the crypto ecosystem in India, with popular exchanges like Zebpay, Bitxoxo and others being its members, said that it is carefully evaluating the impact of RBI’s stance and would come up with a statement only after thorough study.