RBI clarification on Bitcoin and crypto trading, here are 5 key takeaways

RBI’s statement came in response to the warnings issued by banks to their customers, asking them not to invest in cryptocurrencies, citing an old order by the central bank.

“It has come to our attention through media reports that certain banks/ regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018.

A bill was also proposed in this regard ahead of Union Budget 2021, however, it was put on hold after requests from the crypto industry.

The Indian government is believed to have softened its stance on cryptocurrencies and the latest clarification from RBI confirms that.

On many occasions in the past, investors have failed to make profit or execute their orders because of these issues.

This is the first time in months RBI has spoken and taken a step that actually promotes crypto trading, That’s a huge vote of confidence for the industry.

While the RBI has given a relief to crypto investors, it has suggested that both banks and crypto platforms need to make sure that these transactions are not used for fraudulent activities and tax evasion.

Bitcoin, Dogecoin, Ethereum and other coins have become very popular in India over the last six months and millions of new investors have joined the crypto wave.

It is highly unlikely that the Indian government will stick to its initial plans of banning crypto.

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