RBI directs banks to terminate all contracts with cryptocurrency exchange in India

The Reserve Bank has again warned the banks about cryptocurrency. The RBI has asked banks to reconsider all types of deals with cryptocurrency exchanges and terminate them. The decision was taken by the central bank in view of the sharp fluctuations and concerns in cryptocurrency. Three sources in the case have informed about it. However, the Supreme Court has allowed banks to work with cryptocurrency exchanges and traders.

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It is noteworthy that the Government of India is going to introduce a law to ban cryptocurrency because it is viewed with suspicion worldwide. In the era of the corona crisis, large amounts of cryptocurrency were invested worldwide. However, there is confusion among investors as to when the bill to ban cryptocurrency will be passed in parliament. Earlier in 2018, the Reserve Bank had directed banks to ban the accounts of the cryptocurrency exchange and their traders. But the Reserve Bank’s decision was challenged in the Supreme Court, and in March 2020, the Supreme Court allowed banks to work with cryptocurrency exchanges.

10 thousand crores in India

Investment in cryptocurrencies around the globe has seen huge returns, with a huge increase in investment in India too. The number of investors investing in cryptocurrencies in India has reached one crore. It is estimated that over Rs 10,000 crore (36 1.36 billion) has been invested in various cryptocurrencies in India. The Reserve Bank has notified us when it comes to suspicions of cryptocurrency ups and downs, including the possibility of money laundering, said a top bank official in the case. If this is the case, why do business with people who have a relationship with them.

What is cryptocurrency

Cryptocurrency is the currency built into computer algorithms. This is handled by ID and password. There is no controller for this. Apart from Bitcoin, there are many cryptocurrencies such as Red Coin, Sia Quine, Voice Quine, Sisquin and Monroe. It is not approved in most countries of the world.

Also Read: Bitcoin: Learn how to buy and sell it

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