Ahead of the looming ban order, India’s cryptocurrency investors are flocking exchanges to sell off their digital coins. The Reserve Bank of India stamped its authority on cryptocurrency trading in India, a factor that has resulted in this massive haste in emptying their wallets. It is despite the profoundly positive sentiment amongst them who are buoyed by the fact that the authorities will not outright enforce it.
About a month ago, the Reserve Bank of India issued a stern directive to all financial institutions under its umbrella, instructing them to cease any alliance with cryptocurrency exchanges. It gave them a maximum period of three months to cut links with all crypto investors, a factor that seemingly has forced many of these investors to dispose of their coins.
Reuters reported a sharp increase, quoting Exchange operators, investors, and analysts who allude this to the 3-month period. Crypto exchanges understandably have been having something akin to a blissful moment with new investors buying and later selling, according to Shivam Thakral, CEO of Buyucoin, a local exchange platform. However, in a slightly weird twist, retail investors expect most of them to adopt a more ingenious move whereby peer-to-peer networks and social apps like Telegram will still keep the trade alive.
The ban is unlikely
Amidst the quick emptying of cryptos, it appears the ban might not come to pass. At the moment, the RBI order hangs in the balance following a lawsuit challenging the ban. Indian Express reported on Saturday that Justice Rajiv Shakdher had a notice to several involved parties, including the country’s finance ministry, RBI, and the GST Council. The note seeks to know their stand on the petition filed by Flintstone Technologies Pvt Ltd.
If the 3-month period elapses before the case is concluded, Coindelta’s co-founder, Shubham Yadav, expects crypto traders to continue trading unabated. And out there in public, there’s a definite aura that the government might not allow the ban to stand, even when formal banking channels cease any operations.
Many believe crypto-crypto trading platforms will be operational, regardless of the ban. A week ago, Zebpay and Kleenex, two of India’s leading exchanges seemed to have offered investors wary of the ban a reason to get a sign of relief by rolling out crypto-to-crypto trading