Cryptocurrency prices and daily trading volumes increased after the announcement by the Reserve Bank of India (RBI) about the forthcoming ban on crypto. According to Reuters, the average price of bitcoin in India is $9,270. This figure is significantly higher than the average price of bitcoins a few days after the RBI announcement, which was $5,250. The average volume of trade in crypto in the country also increased. According to Pune, the crypto exchange platform, based in India, the daily trading volume reached 75 million dollars.
It is reported on the inflow of traders who want to take advantage of a three-month grace period before the ban enters into force. Thus, these investors can acquire cryptocurrency, while banks still offer support for crypto transactions. When the RBI directive comes into force, these investors will still have the opportunity to trade their cryptos on private trading floors.
Commenting on the situation, Shivam Thakral, CEO of BuyUcoin, based on New Delhi, a crypto platform said that:
In the industry there is a positive mood that the government will not prohibit trade in cryptocurrencies, and even if formal banking channels can not be used, people can go to crypto platforms. New investors come to our exchanges, while the existing ones renew interest after the fall, because they get a good profit and earn money, as the prices for cryptocurrencies are higher.
Indian crypto-regulatory climate
The Government of India, as well as RBI, has traditionally not been keen on cryptography. RBI has always tried to inform investors about the dangers of the crypto currency market. Recently, the bank banned all commercial banks and regulated lenders to facilitate cryptic transactions. The startup company challenges the constitutionality of the RBI ban and takes the top bank to court. The government of the country said that it believes that cryptos funds provide money laundering and terrorist financing.
However, investors in the country hope that the government will take a weighted approach to crypto norms. There are reports that the joint committee of the RBI, the Ministry of Finance and financial regulators is developing a cryptocurrency regulatory framework for the country. Indian Finance Minister Arun Jaitli said in February 2018 that cryptocurrencies should be banned.