Q) What does the Reserve Bank of India (“RBI”) circular no. RBI/2017-2018/154 DBR.No.BP.BC.104 /08.13.102/2017-18 released on April 6th, 2018 (“RBI Circular”) say?
A) The RBI Circular released on April 6th, 2018, introduced a deadline of three (3) months for banks to provide banking services to entities engaged in and dealing with cryptocurrencies.
Q) Has there been any further update to this circular?
A) The Indian cryptocurrency industry body has approached the Supreme Court of India to challenge the validity and simultaneously file an injunction on the RBI Circular. The first hearing is scheduled for July 03, 2018. We hope that the Supreme Court as well as the Indian regulatory authorities will recognize what is in the best interest of the citizens of India, and revise their opinion on cryptocurrencies and the use of the same.
Q) What will happen if the court hearing is not in favour of the Indian cryptocurrency industry body?
A) Upon the expiry of the above mentioned deadline on July 5, 2018, there is a possibility that Coinome’s banking services may stand disrupted. Amongst other things, this disruption in banking services might lead to INR deposits and INR withdrawals being affected.
Q) Does that mean INR based crypto-trading may also stop.
A) Coinome will continue to allow INR based crypto-trading on its platform. However, pausing INR deposits and withdrawals may lead to very low liquidity and hence result in high volatility in prices. Banking is an essential service for buying and selling goods / services / assets with INR. As a result of the above, we are unable to fathom all possible consequences resulting from the disruption of banking services as stated above.
Q) Coinome’s mail only highlights INR deposits and withdrawals, what about Bitcoin (BTC) and other cryptocurrencies?
A) There will be no change to BTC & other cryptocurrency deposits and withdrawals on Coinome. The RBI circular only talks about discontinuing banking services to exchanges. We confirm that the deposit and withdrawals of BTC and other cryptocurrencies will remain unaffected.
Q) What about crypto-crypto trading? Will that be affected?
A) Coinome will continue to offer crypto-to-crypto trading services, without any disruption to the same.
Q) Is Coinome opening new accounts?
A) Yes. Please note that Coinome’s KYC process will continue to be rigorously followed.
Q) Why did Coinome make the announcement a week before, and not wait till the last date?
A) Your interest and the trust which you have placed with us this far is most important to us and for that, we thank you. However, being a responsible, consumer oriented organization, it is imperative that you are informed of the status of your funds to ensure continuity in the relationship we have built together.
Q) If I have INR balance in my Coinome account after your bank accounts are shut, will I never get my money back?
A) We will continue our fight to legalise and regulate cryptocurrencies in India. However, we cannot confirm at the moment if and when we will be allowed to withdraw and deposit such money to your bank account, upon the expiry date as mentioned in the RBI Circular.
Q) Owing to these announcements, the price volatility has increased. Does Coinome itself buy/sell cryptocurrencies to gain from these dips and spikes?
A) Absolutely not. Coinome does not buy, sell, or trade in cryptorrencies. It is just an exchange platform that match-makes buy-and-sell orders of its customers.