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India Bans All Cryptocurrency Dealings

The Reserve Bank of India (RBI) stated that any financial are now banned organization from using cryptocurrencies, such as bitcoin, in any dealings.

RBI’s statement read: “In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling virtual currencies.”

Companies located within India that are already providing cryptocurrency services will have to severe ties with the digital currencies. The specific time period for the severance will later be announced by the bank.

Close-up of Bitcoin with Indian rupee notes
Bitcoin briefly hit a low of $5,400 in India, after the crackdown.

The banks and e-wallets regulated by RBI are not allowed to facilitate any sale or purchase of cryptocurrencies. Because of this, individuals will not be able to transfer money from any bank account in India to a bitcoin wallet. Aside from this, they also won’t be able to fund purchases of cryptocurrencies on an exchange.

Bitcoin and other cryptocurrencies can easily be banned by individual countries. This is because they are not regulated and have no support from any central bank.

Even before the announcement, the relationship between India and cryptocurrencies has been strained. The crackdown was made after the Indian government released warnings regarding digital currencies and the risk that comes with trading it.

In February, India’s finance minister Arun Jaitley, told lawmakers to “take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.”

Bitcoin Stuck Below $7,000

Bitcion plunged to $5,400 in Indian exchanges like Unocoin and Zebpay within hours of the news breaking out.

According to the Bitcoin Price Index (BPI), the cryptocurrency reached $6,583.85 earlier. It was still not able to move past the $7,000 mark. Additional BPI data showed that the digital asset bounced back to $6,918.70.

Bitcoin Tops One Day Trading Volume

Despite the continuous negative news that Bitcoin faced, it topped its one day trading volume of $5.62 billion.

The cryptocurrency traded down 2.9 percent against the U.S. dollar during the one day period ending at 12:00 PM ET on March 13. It has a total market capitalization of $113.88 billion. Aside from this, $5.62 billion worth of bitcoin was traded on exchanges within the past 24 hours.

In the last seven days, bitcoin has traded 9.9 percent lower against the U.S. dollar.

Bitcoin Cash (BHC) has traded down by 4.2 percent against the dollar. It is now valued at $627.67 or an estimated 0.97 BTC.

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