The Indian central bank’s crackdown on virtual money may drive cryptocurrency exchanges out of the country to more friendly locations. Earlier this month, the Reserve Bank of India (RBI) issued a directive that, by July 06, lenders must close the bank accounts of firms dealing in cryptocurrencies.
Banks are also forbidden from offering loans or other services post-deadline. Essentially, this marks the end of the road for the digital currency-related operations in India.
But the exchanges are not giving up just yet. “It won’t be possible for us to function in the current regulatory environment with existing business models.
Therefore, several firms are looking at registering their head offices out of India,” said Shubham Yadav, co-founder of Coindelta, a cryptocurrency exchange. These “cryptocurrency-friendly” locations include Singapore, Switzerland, Estonia, Malta, Japan, Dubai, and the Cayman Islands.
“This way, we won’t be an India-centric exchange but will become a global player,” the CEO of another virtual exchange company said, declining to divulge the firm’s plans. The exchanges are also considering a legal challenge to the RBI’s diktat in the supreme court of India. Read more from qz.com…
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