April, 2018 Bitcoin India Update:
The reserve bank of India has just put the hammer down on bitcoin and crytocurrency hard this month. Dealing with or settling with, anyone in business or for personal in crypto use has been shut down by the main reserve bank in India for any financial entity it oversees.
This of course is another blow to cryptocurrency users in India as the main bank speaks out the side of its mouth on one hand saying virtual currencies have the makings to be able to improve the financial system yet at the same time also raise concerns about money laundering, consumer protection, and market integrity. The solution for them is therefore banning its use instead of finding better ways to deal with the currency.
All regulated entities by the RBI must immediately desist in operations involving cryptocurrency. Anyone dealing in cryptocurrency going forward is doing so at their own risk cites the RBI from their latest press release April 6, 2018
3 Months is stated from the date of the release April 6, 2018 for full compliance by all those regulated by the RBI to cease in all transactions involving cryptocurrency.
Its time to switch banks if your a crypto user. Read more below for alternatives.
Lets take a look at Bitcoin India buying and selling news. How it started to where it is today in turmoil, with the crackdown of 2018 by the Indian Government. Also the legal issues facing Bitcoin in India and where we can still buy and sell bitcoin legally in India. Also who is accepting bitcoin in India? Who are the merchants accepting bitcoin. Are there any?
Brief history of Bitcoin in India
Although Bitcoin was launched in 2009 it was not until late 2012 did it gather support and interest in India. In 2013, BuySellBitco (which was later changed to Zebpay) became the first Bitcoin company to be launched in India.
Launched in 2014, Unocoin and Coinsecure became the first two exchanges to begin operation in India. Over the years Unocoin has become the largest Bitcoin India wallet in the country which provides a gateway for merchants to accept Bitcoin from customers.
There is no way one can talk about the history of Bitcoin India without the mention of Zebpay. This was the first Bitcoin Company in India. It launched simple Bitcoin mobile wallets applications that can be used for transactions using mobile numbers. Zebpay at the time of its launch till date has created a platform that allowed people to buy, sell and make transactions on the platform. It supports the exchange of flat or traditional currencies to Bitcoins.
The launch of Zebpay in 2013 was the first step that was taken to inform people about the use of Bitcoins in India.
Rise of Bitcoin India
In November there was an increase in the interest in Bitcoin this was when the demonetization policy was implemented. The policy was implemented as a measure to stop all black market transactions and tax evasion in the country. The policy resulted in a phase-out of larger denominations like 500 and 1,000 Rupees.
When the policy was finally implemented, the country witnessed the disappearance of about 86% of paper money in the economy. This triggered millions of Indians to turn to Bitcoin as an avenue to safely store their savings to protect from confiscation and inflation. Since November 2016, the leading exchanges in Bitcoin has seen over 250% increase in the total number of users.
Indian government’s view on Bitcoin
The Indian government and Reserve Bank of India are biased towards the spread of Bitcoin. The status of Bitcoin in the country is still being formalized with the legislation. The process for the formalization began in March 2017. This article will take a look at the steps and committees that have been set up by the government in the process of legalizing Bitcoin.
• A committee was set up in March 2017 which included IT ministry officials, Finance ministry officials and the Reserve Bank of India. This committee was set up to discuss the legalization of Bitcoin.
• The findings of the commission urged the country to stop the use of cryptocurrencies to save the people from fraud and money laundering. This report was sent in July 2017
• The Supreme Court of India in August 2017, wrote a report to the Federal government urging them to investigate the security issues related to Bitcoin.
• A special investigation team was set up in September 2017. This team that was appointed by the court sent a report to the central government recommending the restraint of Bitcoin.
Use of Bitcoin India Online Exchanges To Buy and Sell Bitcoin
Unocoin, Zebpay, Bitxoxo, LocalBitcoin, and Coinbase are the online exchanges that Bitcoin can be purchased from in India. It is recorded that there are about 1 million Bitcoin users in India, and there are about 2,500 users daily investing in Bitcoin.
A number of online and physical merchants have begun accepting Bitcoin in India as a form of payment. Some of them include;
Fashiondiva; this is an online clothing and fashion accessories, merchant.
Sapna; an online bookshop merchant.
Travel smart: an online platform that sells bus tickets
Dharward School: a school institution that accepts Bitcoin as a form of payment.
Tecdoc; an online software utility management firm.
Currently, about 2,000 merchants are accepting Bitcoin as a form of payment for services rendered and goods or products bought. This is an increase from 500 in December 2016.
Price Trends of Bitcoin in India
The price of Bitcoin has been on the rise in India since the demonetization policy in 2016. We will try to make a list of the various prices of Bitcoin in India since September 2017.
1st September 2017, the price of Bitcoin was 290,829 Indian Rupees (INR). Two weeks later the News that China will be shutting down their cryptocurrency saw the fall of Bitcoin to 280,628 INR.
Starting from 283,894 INR on October 1st, Bitcoin’s value increased drastically to 671,327 INR. This increase was because the Indian cryptocurrency market bounced back
Starting from November 1st the value of Bitcoin dropped to 455,433 INR. It experienced a steady increase till November 30th when it stopped at 671,327.
There was an increase to 709,339 INR beginning December 1st. The price soared high to 947,519 INR by month end. This increase was facilitated by the disconnection of Bitcoin cash from Coinbase.
Currently, the price of one BTC is 702,999 INR.
Exchanges to buy Bitcoin in India
There are various exchanges to buy Bitcoin from. Most of these exchanges support the exchange of Bitcoin for other flat or traditional currencies. Also, most exchanges support anonymity for users who want to make transactions. Some of these exchanges are;
Zebpay; the first Bitcoin company in India which supports the buy and sell of Bitcoin between users
Unocoin: this is arguably one of the largest Bitcoin exchanges in India. It is also one of the oldest
Coinsecure: along with Unocoin, this is the oldest exchange in India. It supports the buying and selling of Bitcoin and other cryptocurrency mining coins.
LocalBitcoin: this is the first peer to peer exchange in India. It supports the use of fiat currencies in the purchase of Bitcoin. It also supports anonymity for users.
Bitxoxo: this is also one of the largest exchanges in India. It supports the buying and selling of Bitcoin between users.
There are several exchanges that Bitcoin India Investors and bitcoin miners could buy and sell from, but these five are the largest.
We have discussed the history of Bitcoin and how the government of India is trying to shut down the use of Bitcoin in the country. Now lets take a look at 2018 and the bitcoin India legal challenges ahead.
2018 Bitcoin India Crisis: Legal Issues
Ways to still buy and sell Bitcoin after the shutdown in India. Is the Beginning of the end to Cryptocurrency Mining
The Indian government is making plans to shut down the buying and selling of Bitcoin in the country. Free Bitcoin trading among the people of India may become a thing of the past soon. There are two major alternatives that could be of help to you if you decide to buy and sell Bitcoins after the shutdown. They are:
Founded in 2012 by Jeremiah Kangas, LocalBitcoin is one of the oldest Bitcoin exchanges in the world. It is currently the largest peer to peer exchange in the world. LocalBitcoin offers services to buyers and sellers of cryptocurrencies like Bitcoin, Ethereum, and other altcoins.
LocalBitcoin offers sellers and buyers a platform to negotiate and agree on transaction terms and it also facilitates the transaction with written services for the protection of the trading parties. LocalBitcoin provides a platform for meeting buyers and sellers all over the world for the trading of Bitcoins amongst other cryptocurrencies.
It also enables face-to-face or online transaction. The former is done by matching people that live nearby together. For security reasons LocalBitcoin provides a written instrument for transactions, this is also done to ensure that each user is treated fairly in all transactions.
All payment methods are accepted on this platform as long as is it accepted by the community of users. It enables fast processing of transactions. It does not require any personal information or any form of verification for trading.
Getting Bitcoin to your Indian Bank Account
There are so many decentralized exchanges that can also be used to buy and sell Bitcoins, some of these decentralized exchanges include;
one fascinating fact about Bitquick is the fact that it does not require verification to buy and sell Bitcoins. Bitquick provides a platform for trading where users do not need to register or create an account. To trade, users only need to enter a password and external wallet address.
this is a fully decentralized exchange that does not require email, name or any verification. To trade, all you have to do is download the software, enter only a password for your wallet and you are ready. It supports Bitcoin and over 125 cryptocurrencies, and it can be downloaded to your Android, Windows, Mac, and Linux devices.
this decentralized exchange does not require that users verify their identities when they want to trade. It is good to know that there is no trading limit for unverified traders on this exchange.
this is a trading platform that allows users to buy and sell Bitcoins without verifying their identities. There is zero charge for trading cryptocurrencies, stocks, and commodities on this platform. Whaleclub.co supports only two cryptocurrencies: Bitcoin and Dash.
this platform does not require any form of verification before trading. It supports the use of fiat currencies to make deposits or purchase cryptocurrencies.
LocalBitcoin and these decentralized exchanges mentioned above all have one thing in common which is; they all do not require personal information or verification of identities for trading. These platforms will help you buy and sell Bitcoin and other cryptocurrencies anonymously after the shutdown, but bitcoin is becoming more of a gamble in India now than ever before.