Cryptotrading still alive in India despite RBI efforts

RBI bans banks from working with crypto exchanges, but Unocoin and Zebpay continue trading, already calling people to sign the petition against new regulations
08 April 2018   595

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.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   70

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.