Indian crypto exchanges are responding to the Reserve Bank of India (RBI)’s ban on cryptocurrency by considering relocating out of the country.
Last week, the RBI decided to disallow customers from buying cryptocurrencies through their banks. The RBI stated that any entity regulated by them “shall not deal with or provide services to any individual or business entities dealing with or settling VCs [virtual currencies]. Regulated entities which already provide such services shall exit the relationship within a specified time.”
The immediate response to this was an overall drop in the cryptocurrency market, as panic selling ensued. Soon after, a petition was handed around by the Indian exchange Bitbns to lobby against this decision, which garnered over 20,000 signatures in just four days.
Now, several Indian crypto exchanges may be looking to relocate outside of the country, according to the Economic Times. Those considering moving include the exchanges Unocoin, Zebpay, Coinsecure, Buyucoin and Btcx India.
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Where will the exchanges move to? Several locations have been suggested, including Belarus, Singapore, and Delaware.
The CEO of the Buyucoin exchange, Shivam Thakral, explained to the Economic Times the decision behind the possible relocation:
“We have to move our company to some foreign country where regulations allow opening of bank accounts plus we won’t be dealing in fiat currency. It will become a global operation rather than an India centric operation.”
According to Bitcoin.com, if the Indian exchanges do decide to move abroad, “Indian investors may be able to continue to invest with the platforms through innovative structures,” said Grant Thornton advisory director Riaz Thingna. What those innovative structures could be, she did not elaborate on.
What do you think is going to happen?
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