The spread of disease coronavirus has deeply affected the cryptocurrencies market, currently. The growing and un-ending effect of the disease has prompted the situation. But today we are taking you to flashback in 2018 when RBI restricted cryptocurrency. At that time as per the statement of the central bank, no entities were supposed to deal in digital currencies, including services. If you are a crypto enthusiast and has been following the latest Bitcoin news, then you might be knowing that this was not the first time RBI had put restrictions on cryptocurrency. In the past, the central bank had made constant warning regarding the investment of Bitcoin.

Those who invested in cryptocurrencies and crypto exchanges of India were certainly got affected by the RBI's ban. $2billion was supposed to be the estimated Bitcoin investment in India during that time. Following the ban by RBI's policy statement for making new investments in digital currencies, the investors were restricted to deal in it. They were advised to unwind the crypto relation within three months' period.

So those who planned to buy Bitcoin anonymously or were searching for the right time to buy Bitcoin, left the idea. It was all because RBI restricted cryptocurrency. The ban on cryptocurrencies was mainly pointed to banks. It also made an impact on the investors as per the need for fiat currency for the digital currencies trading. The ban was enough to bring volley of worries on the faces of retail investors. They would have faced a problem, even if they chose to exit.

Two-Way Choice For Investors

Now if there was anything which gave crypto investors a good solution, especially at the time when RBI restricted cryptocurrency, then they had two choices to follow.

Get Out Policy

If you think cryptocurrency was restricted by RBI only, then you are wrong. There were restrictions from the government too with stern warnings. In the previous budget, cryptocurrencies do not come into the category of legal tender by the government. It would be better to avoid going as it will prove much crucial for the cryptocurrencies and its exchanges. The better option was to get out. Some financial advisors suggested diverting the legitimate assets and investments to the RBI window to cryptocurrency investors. It was all to save the finances and to maintain cordial relation with banks.

Global Exchange Transfer

Another solution which was recommended at the time when RBI restricted cryptocurrency was global exchange transfer. This step was the only solution which gave people to invest in digital currencies. Cryptocurrency users were suggested for the transfer of holdings to foreign one from Indian crypto exchange. If any investors had wished to go for long term trading, then they had to rely on exchanges like Binance. The exchanges always support most of the cryptocurrencies.

Ban Lifted By Supreme Court

However, later the ban on cryptocurrency was lifted off by the Supreme Court of India. The most dominant cryptocurrency, Bitcoin was down at the time when RBI restricted cryptocurrency. But now the current market capitalization of this leading digital currency at $161 billion. People were so curious and had been waiting for 2 years to finally see the ban being lifted by the apex court of India.

Companies which were shut down because of the ban by RBI soon started showing positive signs by restarting their business. There was strict regulation for everyone who dealt in cryptocurrencies. However, the circular was defended by the central bank in the apex court in the following year. RBI remained consistent in opposing for making other payments allow and to lessen the effect of the banking system. RBI made an argument which stated no formal ban on cryptocurrencies in India. It made a warning to aware crypto holders about the risks involved in the digital currencies.

So this is how RBI restricted cryptocurrency. Now, even though the ban is lifted off for cryptocurrency. But it seems there is another major hurdle which is facing right now is the monstrous attack of coronavirus. This disease has dampened businesses and has badly influenced cryptocurrencies also.

Conclusion

So that was all about during the year 2018 when RBI restricted cryptocurrency. It was nothing new, as there were hurdles in the way of cryptocurrencies in the beginning. The wave of cryptocurrencies did not happen overnight. It was strictly prohibited in big nations like India and China. The reason for such restriction stated about the illegal use of digital currencies for selfish motive or some other wrongful reasons. But later on, the ban was finally lifted off by the Supreme Court of India. It gave cryptocurrency a green flag to make its importance among Indian traders and its people. Though currently, cryptocurrencies are being affected by Coronavirus. Many businesses are hoping to get ward off from this harmful disease.