Should you exit your crypto holdings now?
If you have holdings in cryptocurrencies, in spite of Reserve Bank of India’s (RBI) warning in December and the government’s word of caution earlier this year, the latest RBI announcement may have worried you. Last week, the RBI clamped down on cryptocurrency-rupee trading in the country.
The RBI has given a three-month window to regulated entities such as banks and non-banking finance companies (NBFCs) to wind up existing relationships with firms or individuals dealing in cryptocurrencies. Speaking at a press conference on Thursday, RBI deputy governor B.P. Kanungo said virtual currencies can “adversely impact market integrity and capital control. And if they grow beyond a size, they can endanger financial stability as well.”
Should you exit now ?
If you want to redeem your crypto assets in rupees into your bank account, then this is the chance. After three months, you will have to trade in crypto assets or sell through other channels. You can even sell it after that but you may not be able to withdraw the money in your bank account and will need to convert it into some other crypto asset.
If you are unable to exit or choose not to exit in the three-month window, look at your options in the future and consider the risks, which seem to be very high. New investors should stay away.
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