In the past few years, the cryptocurrency market has been in a state of turmoil. Due to the volatile and unregulated nature of this market, not only various investors but even the government of countries are incertitude.
On 17th December 2017, the most conspicuous cryptocurrency “Bitcoin” skyrocketed and reached at its all-time high with its value being $19783.21/Bitcoin. In comparison to its price at the beginning of the same year, the value increased approximately by 1900%.
However, at present, the value has toppled to around $6500/Bitcoin
Due to such precarious nature of the crypto-market, the apex banking institution of India i.e. The Reserve Bank Of India took the matter to its own hands to protect the interest of investors, customers and various interested parties and gave cryptocurrency the status of “Not Legal Tender” however this doesn’t make them illegal but instead block them from financing illegitimate activities. After issuing various warnings to the cryptocurrency exchanges in India with regards of cryptocurrency being a “Ponzi Scheme”, in April 2018, the apex institution directed all banks to wind down all relations with exchanges and virtual currency investors within 3 months of order.
Due to this decision, the Indian Crypto-market was chocked.
In retaliation, the exchanges took the same to the supreme court seeking justice. However, the decision still awaits and the exchanges continue their struggle. With its continuing “wait and watch” game, on 28th September 2018, Zebpay-India’s largest cryptocurrency exchange, shut down after RBI’s Bitcoin ban. Zebpay issued a statement which said “….The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business.”, This led to a small victory for RBI, however, was equal to a battle lost for other exchanges.
But, not all exchanges gave up.
On 14th October 2018 another leading cryptocurrency exchange in India, namely “Unocoin” introduced India to its first ever cryptocurrency ATM in Bengaluru’s Kemp Fort Mall.
According to Sathvik Vishwanath, co-founder and CEO of Unocoin,
“Our ATMs do not need banking network or relationship to work. They just work as the cash deposit and dispensing alternative for Unocoin customers.”
Though it is not very clear how the cash management system will work for these ATMs, considering the money collected cannot be deposited in banks in the accounts under Unocoin’s name. But it has given rise to various opportunities for exchanges in India to get back to business.
Since RBIs’ stance has been very nebulous towards cryptocurrency from the start as it declared cryptocurrency non-legal tender but planned to embrace the technology. Unocoin has exploited RBIs’ dictatorship.
- Raj Sanghvi
The Endeavour Editorial Club 