Highlights
- RBI had banned regulated entities to deal in crypto
- An Inter-ministerial Committee has recommended the ban of cryptocurrencies in July 2018
- Jail term for all users of cryptocurrency has been suggested
Early in 2018, The Reserve bank of India (RBI), India’s monetary authority decided to take a stance on the apparent growth of cryptocurrency in India by disallowing all regulated authorities such as Banks, NBFCs, etc., in dealing with cryptocurrencies. Since then the road to adoption in India has only gone downhill.
This “Crypto Ban” as it was called by the Media, put a huge dent on cryptocurrency volume in India. Exchanges were shut down, thousands if not millions of people gave in to the FUD and lost huge amounts of money.
But that didn’t stop the enthusiasts from doing what they love to do. In spite of this crackdown, cryptocurrency transactions continued to be on the rise. Exchanges discovered loopholes and effectively became P2P exchanges so that they do not have to have an intermediary in between.
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