Investors in India are flocking to trade cryptocurrencies before the ban order by the Reserve Bank of India takes effect. There is a positive sentiment in the local crypto community that the Indian government will not outright ban crypto trading.
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Investors Rush to Get Into Crypto
It has been a month since the Reserve Bank of India ordered banks and financial institutions under its control to stop providing services to cryptocurrency exchanges. The central bank has given banks three months to end their relationships with crypto operators. However, ever since the order, cryptocurrency trading volumes in India have surged dramatically.
“Exchange operators, investors, and analysts say people are rushing to take advantage of a three-month window the Reserve Bank of India has given banks to sever ties with cryptocurrency traders and exchanges,” Reuters elaborated, adding:
Getting in now enables investors to convert rupees into cryptocurrencies, which they can later swap for other coins via private trading platforms even after the central bank’s rules take hold.
Shivam Thakral, CEO of crypto exchange Buyucoin, was quoted saying “new investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher.”
Retail investors believe that “most trading is likely to move to peer-to-peer networks or social applications such as Telegram” after the three month period is up, the news outlet added.
Crypto Trading Ban Unlikely
The RBI’s order has already been challenged in court by a cryptocurrency firm.
On Saturday, the Indian Express reported that Justice Rajiv Shakdher “issued a notice to the RBI, the finance ministry
