There goes India’s cryptocurrency market. The Reserve Bank of India banned banks from allowing people to transfer money from their bank account into Bitcoin wallets.
The RBI banned Bitcoin on Thursday, effective immediately, according to The Economic Times.
Investors in these new digital assets have been waiting for the next big thing, but have been stuck with what one investor calls “mediocre coins from mediocre startups.” The market needs something new following last year’s run-in in Bitcoin and other top cryptocurrencies like Ether.
Messaging app Telegram is launching a coin sometime this year, but that has been closed to retail investors.
China has kept its ban on Bitcoin exchanges and initial coin offerings (ICO). And while India is not a big player, it just serves as a reminder of the headwinds the industry faces. This is keeping out short-term investors.