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Good Luck Buying Bitcoin In India As Central Banker Bans

By April 5, 2018 No Comments

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There goes India’s cryptocurrency market. The Reserve Bank of India banned banks from allowing people to transfer money from their bank account into Bitcoin wallets.

If banks, e-wallets and any other entities regulated by RBI are not allowed to facilitate sale or purchase of cryptocurrencies, individuals will not be able to transfer money from any bank account in India into a Bitcoin wallet like Bitpay, nor will they be able to fund purchases of cryptocurrencies on an exchange. They’d have to figure out a way to pay people in cash, meaning if there is a Bitcoin market in India, it is going to move underground.

The RBI banned Bitcoin on Thursday, effective immediately, according to The Economic Times.

India is not a huge market for crypto, so Bitcoin was down only 2% today and probably not due to the RBI’s announcement. China, South Korea, Singapore, Japan and the U.S. are the biggest markets for cryptocurrencies.

Investors in these new digital assets have been waiting for the next big thing, but have been stuck with what one investor calls “mediocre coins from mediocre startups.” The market needs something new following last year’s run-in in Bitcoin and other top cryptocurrencies like Ether.

Messaging app Telegram is launching a coin sometime this year, but that has been closed to retail investors.

China has kept its ban on Bitcoin exchanges and initial coin offerings (ICO). And while India is not a big player, it just serves as a reminder of the headwinds the industry faces. This is keeping out short-term investors.

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