Bitcoin Prices Rebound Despite Reports of India Crypto Regulation

Uncategorized – Bitcoin prices rebounded on Friday despite reports that the Reserve Bank of India (RBI) has officially ordered all regulated entities to refrain from providing services to all businesses involved in digital currencies.

Bitcoin was trading at $6,768.3 by 12:15PM ET (04:15GMT) on the Bitfinex exchange, up 2.3% over the previous 24 hours.

Ethereum, the world’s second largest cryptocurrency by market cap, jumped 2.9% at $379.58 on the Bitfinex exchange.

Ripple’s XRP token gained 1.8% to $0.48819 on the Poloniex exchange.

Meanwhile, Litecoin also surged 3.7% to $118.62

In an official press release, the RBI cited multiple claims that cryptocurrencies are potential tools for criminals and those looking to undermine market integrity.

“Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. 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 VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately”, the RBI said.

However, the RBI admitted the underlying technology of cryptos has “the potential to improve the efficiency and inclusiveness of the financial system.”

“Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others,” the central bank added.

The RBI has expressed interest in launching its own digital currency during a media briefing recently, adding that an interdepartmental group was created to look into the possibilities to introduce a central bank digital currency.