Crypto traders cry foul against RBI crackdown on virtual currency

In the wake of RBI guidelines to stop dealing in cryptocurrencies, the traders indulge in such businesses have called for a campaign against the central bank, saying that they will continue to deal in virtual currencies.

On Thursday, the bank regulator had released a statement directing all regulated entities, including banks, e-wallets, and payment gateway providers, to stop dealing with individuals and businesses in the partially banned cryptocurrencies.

The central bank, however, clarifies that it will continue to promote the use of blockchain in financial services for strengthening transparency and improving inclusion.

After the RBI's crackdown, Crypto traders call for a campaign against it with #RBICantStopMe on different social media especially Twitter and Facebook.

Also Read: After Facebook & Google, Twitter to ban cryptocurrency ads

Industry experts say that RBI's decision will encourage hawala trading and keep bitcoin trading out of the purview of income tax authorities, reports ET.

The report further added that traders may take the early days model of trading in cash but they will continue to deal in cryptocurrency as long as the government doesn't declare a blanket ban on it.

Meanwhile, RBI is exploring the creation of its own cryptocurrency. It has also set up a panel to study the desirability and feasibility of introducing a virtual currency, and the group will submit its report by the end of June.

In the past RBI had already warned against the virtual currency. Additionally, the Indian government also keeps a strong stance against cryptocurrency and asked consumers to be alert before investing in cryptocurrency and compared it with notorious Ponzi schemes.

The RBI decision comes on the heels of the arrest of one of largest bitcoin fraudster Amit Bhardwaj. Bhardwaj had been on the large and facing scam charges worth $300 million (approx Rs 2,000 crore) attached to his company GainBitcoin.