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Indian investors flock to trade cryptocurrency ahead of RBI ban

Investors in India are flocking to trade cryptocurrencies before the ban order by the Reserve Bank of India takes effect. There is a positive sentiment in the local crypto community that the Indian government will not outright ban crypto trading.

RBI Regarding Cryptocurrency
RBI Regarding Cryptocurrency

It has been a month since the Reserve Bank of India ordered to bank and financial institutions under its control to stop providing services to cryptocurrency exchanges. The central bank has given banks three months to end their relationships with crypto operators. However, ever since the order, cryptocurrency trading volumes in India have surged dramatically.

“Exchange operators, investors, and analysts say people are rushing to take advantage of a three-month window the Reserve Bank of India has given banks to sever ties with cryptocurrency traders and exchanges,” Reuters elaborated, adding.

Shivam Thakral, CEO of crypto exchange Buyucoin, was quoted saying “new investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher.”

Retail investors believe that “most trading is likely to move to peer-to-peer networks or social applications such as Telegram” after the three month period is up, the news outlet added.

The RBI’s order has already been challenging in court by a cryptocurrency firm.

On Saturday, the Indian Express reported that Justice Rajiv Shakdher “issued a notice to the RBI, the finance ministry and the GST Council and sought their stand on the petition challenging the RBI’s April 6 circular ‘Withdrawing Banking Support to Virtual Currency Exchanges’.”

Cryptocurrency firm Flintstone Technologies Pvt Ltd “sought the court’s direction for quashing of the circular issued by the Reserve Bank of India as the same was ‘arbitrary, unconstitutional’,” the publication detailed, adding.

Shubham Yadav, Coindelta’s co-founder, believes that crypto traders would likely continue to trade “if it remained legal, regardless of the banking ban,” Reuters conveyed.

Thakral was then quoted by the publication, “there is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms.”

Trading between cryptocurrencies, which the central bank ban does not penalize, has already begun to ramp up. Last week, two Indian crypto exchanges started offering crypto-to-crypto trading – Zebpay and Koinex. The latter offers 23 trading pairs while the former offers one.

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