How To Use Cryptocurriences After The RBI Recent Guidelines
Within 2 years, cryptocurrencies like Bitcoin and Ethereum have gained a lot of popularity. Since they were a new type of currencies, they attracted investors. Bitcoin was the most famous topic of last year. The way Bitcoin was gaining popularity; its market value continued to go higher than ever. There were many drops also, But still, Bitcoin managed to attract investors.
People from all over the world are looking for Bitcoin as a new way of digital currency. There are many disadvantages also. Since no agency manages Bitcoin, it is tough to track bitcoin transaction. This method attracted people like hackers and fraud to invest in bitcoin. This is the currency that gives freedom to the people who do illegal business.
Bitcoin also attracted the attention of governments. Many countries made Bitcoin as an illegal way of transaction. The government of India was also not behind. There are many rumors and debates in India about Bitcoin to consider it legal or not.
Finally, Reserve Bank of India announced in its first bi-monthly monetary policy for the FY 2018-19 making a final decision about it. RBI announced that entities regulated by RBI could not provide services to any person or business for buying or selling cryptocurrencies like Bitcoin. RBI also warned such users about the risk of virtual currencies.
Last week, Supreme court of India had decided to hear the petition of the Internet and Mobile Association of India on July 20. It is being said that RBI’s decision to ban virtual currencies will be implemented. This step of RBI virtually bans cryptocurrencies even if the government has not officially banned them.
After this decision, Banks will no longer provide services for making transaction for trading in cryptocurrencies. There was a huge amount of investment in Bitcoin from Indian users. But after this decision of Supreme court, most of them will be disappointed.
How Investors Will Be Affected And What To Do Next?
Thousands of users have invested in Bitcoin through crypto wallets. Unocoin and Zebpay hold most of the crypto market in India. Many companies who trade in cryptocurrencies had warned their users to withdraws their money as soon as they can.
If you are holding such investment in crypto wallets, here are some ways you can get them out.
In a peer-to-peer transaction, buyers and traders are connected via an intermediate platform. Domestic exchange companies such as KoineX and WazirX are looking towards another way to make transactions.
WazirX will allow its users will make crypto transactions directly by making online payments outside their platform. WazirX will hold the virtual money and will release the virtual money when the payment is confirmed.
KoineX has also decided to trade this way. KoineX announced that they are going to launch a peer-to-peer network in July. They will offer blockchain-based escrow. It is not illegal to provide peer-to-peer transaction facility.
There is a platform called ‘Local Bitcoin’ that provide services to transact Bitcoin online. This is a peer-to-peer Bitcoin trading platform. They also facilitate cash payment service in India. However, the price of purchasing Bitcoin through cash is higher than online platforms.
Local Bitcoin is an online platform that makes trading in bitcoin easy. On the homepage of their website, you can list of sellers and buyers who are willing to trade at a given price. Their site also indicates price rates by various sellers and buyers. There is a limit displayed on the website about how much you can transact with each individual. Payment method is also described there.
There are many options if Bitcoin gets banned in India. You can transfer your Bitcoin to other platforms. There are many platforms available who trades Bitcoin worldwide. Many of them give you the option to convert your Bitcoin to USD or Euro. You can convert your bitcoins through them. Some of them will also provide you to withdraw money into PayPal account. This is the easiest way to get your money out of Bitcoin.
There are multiple groups on WhatsApp and telegram who can find you direct buyers for Bitcoin. You can contact them. Please take a note that this is a risky way of trading. There is no guarantee involved with this type of transactions.
You can contact relatives who live abroad. They can convert your Bitcoin into USD or any other currencies. They can transfer your funds via wire transfer or give them back to you as cash when they get back.
Multiple individuals do not have an idea about what to do if Bitcoins gets banned in India. It is a virtual currency; there is always a way you can get your money out. I hope this article clears your thought to make necessary steps for your virtual currency.