India, Pakistan central banks clamp down on crypto-currencies

India’s central bank barred banks on Friday coming from having any links to virtual currency dealers, slashing the prices of bitcoin along with also some other crypto-currencies on local exchanges.

Pakistan’s central bank said in a separate statement late on Friday in which crypto-currencies were not legal inside country.

The State Bank of Pakistan told banks along with also some other financial services providers to refuse customers seeking crypto-currency transactions.

in which noted in which those using crypto-currencies to transfer funds outside Pakistan could be prosecuted.

India’s government along with also the Reserve Bank of India (RBI) have previously cautioned the public over crypto-currencies, with completely new Delhi vowing earlier This particular year to eliminate the use of digital currency, which in which considers illegal.

The RBI said on Thursday in which entities under its regulation may not deal in any virtual currency.

The cost of bitcoin plummeted to a low of 350,000 rupees ($5,392) versus its international market cost of $6,617, following the RBI announcement, crypto-currency exchange Coinome said.

Bitcoin was trading before the announcement at a 5 percent premium to the overseas cost, said Vishal Gupta, co-founder of the Block Chain along with also Cryptocurrency Committee, an industry body, noting in which is actually today trading at a significant discount.

“This particular seems to be a very aggressive move,” said technology law expert Namita Viswanath, a principal associate at IndusLaw.

“Instead of the RBI taking a holistic approach along with also seeing how to curb potential misuse, in which seems to be a rather broad-stroke approach of completely prohibiting This particular altogether.”

Late on Friday the RBI issued a more detailed circular stating any regulated entities in which already provide virtual currency dealing services will have to cut all ties within three months.

The Indian government has previously likened crypto-currency investments to “Ponzi schemes” in which offer unusually high returns to early investors.

in which has set up a panel to investigate crypto-currencies along with also plans to appoint a regulator to oversee unregulated exchanges.

Thursday’s announcement raised concerns about the exit options for investors who currently hold crypto-currencies.

The Block Chain along with also Cryptocurrency Committee’s Gupta estimated in which at least 4 to 5 million people in India hold some kind of crypto-currency along with also in which 60 percent of them entered the market between October along with also December, when prices were at a peak.

“Most of these people are already sitting on capital losses,” he said. “today the asset has become dead. You can’t transact with in which. If you transact with in which, your bank accounts are going to be shut.”

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