Reserve Bank of India recently caused an uproar in Indian cryptotrading community with their ban for all RBI-regulated banks to work with any cryptocurrency operators.
RBI released a statement, with Chief General Manager Jose Kattoora as a spokesperson, that the banks should stop any partnership or affiliation with any business or person(s) that are dealing with cryptocurrencies. The banks have three month to confirm with the new regulation, or face charges and fines.
The goal for all this hassle is, apparently, to curb over the counter cryptocurrency trading and stop money laundering. Which, if one stops to think about it, is quite strange considering the fact that instead of preventing, it will magnify the problem. The legal exchanges always have an extensive Know-Your-Client policy to prevent exactly this shady stuff from happening, and they are now getting roadblocked for all the effort.
Despite the media craze surrounding this ban, it doesn't entail a ban on cryptocurrency trading as a whole. RBI only made banks stop their partnership with exchanges, which means that while there may be problems with or outright no way of converting fiat to crypto and back, trading itself wouldn't pose any problem to the users.
Still, one of the largest Indian cryptocurrency exchanges – Unocoin, has released a statement, that the clients' funds, be they fiat or crypto, are safe on the platform and the users can still trade and utilize their money as they see fit, even withdraw them to fiat. At least for now.
Mirroring the competitor, Zebpay also announced that there shouldn;t be any problems with trading itself, but in this case they've preferred to cover ther back with a remark of possible problems with deposits and withdrawals. Also of note is a passage that they can't guarantee any returns in such cases.
Already there is a huge movement underway to refute these new regulations. Several prominent players from blockchain community and exchanges are reaching to the Indian government to withdraw the ban. Also, common folk can sign a petition supporting the same agenda.