News

Online Petition Against RBI’s Ban on Cryptocurrency Transactions Gathers 22,000 Signatures

0 Comments

An online petition against the decision by the Reserve Bank of India to ban banks from offering cryptocurrency services has gathered 22,201 signatures.

The petition was launched just four days ago and addressed to the RBI and the Prime Minister. The petition takes a jab at the regulator’s contradicting positions, on the one hand effectively banning crypto transactions through banks while on the other hand mulling over introducing an official digital currency.

Rupee

India will be left behind by other countries if it does not provide a facilitative environment for the technology, the petition says. As an example, it gives taxi hailing services such as Uber which were at first shunned by several governments but which  have since “weaved it beautifully in the lifeblood of how the city moves.”

Protectionist Stance

It calls on the authorities to drop its protectionist stance against cryptocurrencies and instead encourage innovation through the blockchain technology.

“This is clearly stifling innovation around blockchain. If a government does not facilitate adoption of new technology the country stands to left behind. It’s not that a Google or an Apple gets created by a govt. It’s when entrepreneurs are provided the best possible launchpad when this happens. If as a govt you do not provide that – that’s when people like Sundar Pichai or Satya Nadella have to leave the country and they become creators for some other countries,” the petition on Change.org reads

Last week, RBI banned banks and other financial institutions from offering cryptocurrency-related services.

Deputy governor BP Kanungo said the decision was reached in light of the “associated risks.” Banks offering such services to clients now have three months to end them, the directive said.

Official Cryptocurrency

During a press conference announcing the move, BP Kanungo said a panel was looking at the possibility of introducing an official digital currency backed by the government.

RBI

Cryptocurrency exchanges are reportedly planning to move overseas in the wake of the sudden directive.

The petition points out the fact that people will simply switch to trading cryptocurrencies in cash backing the claim with figures showing that the trend went up 80 times in the last one year.

The move also puts the hard earned money of millions of Indians in jeopardy after a knee jerk reaction in prices.

But the government also stands to benefit from the revenue generated from profitable business models if the sector is allowed to thrive, the petition says. The petition notes that cryptocurrency exchanges have been extremely compliant with KYC norms.

Leave a Reply

avatar
  Subscribe  
Notify of
close-link

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.