To
All Chairpersons
Banks in India
Dear Sirs
It has been reported in the media as if RBI has granted a new relief to the Bitcoin community by stating that “Banks should not quote the 2018 circular” for not allowing Banking transactions to Bitcoin exchanges.
The Bitcoin community is spreading the fake news that the Government is diluting its policy on Bitcoin.
To an independent observer RBI appears to have only warned the Banks that if they want to take any action in this regard, they should not quote the said circular since the Supreme Court in its wisdom held that the circular was not properly worded and had to be treated as withdrawn.
What this means is that the Banks are left to take their decision but as their own decision. They cannot either ban or allow Crypto transactions taking shelter under RBI regulations. They will have to stand on their own legs and have to face the consequences.
We are aware that the Bitcoin community has corrupted the thinking of many and only well informed Bankers can understand that allowing a private crypto currency to function is killing the currency system in India and causing chaos in the Indian economy.
RBI is under pressure from the lobby to give as much long rope as possible so that exchanges can do some business before the doors are shut. The Supreme Court through some strange logic struck down the circular though it did not declare Bitcoin as legal otherwise. Finance Ministry also wants to give as much time as possible to all the Bitcoin exchanges to push through as many transactions as possible.
All this will not alter the situation that Bitcoin along with all the private Crypto currencies represent digital black wealth and the main currency of Cyber Criminals, Cyber terrorists and enemies of the sovereign Government of India who want to undermine our currency system.
In the event any Banks fall for the propaganda of the Bitcoin lobby and considers that RBI clarification is a license for them to allow digital black money transactions through their Banks, they will be providing assistance for money laundering since substantial part of the trading of Bitcoins and other cryptos have once gone through an illegal drug trade or arms trade or a crime and as an asset which is not a negotiable instrument, will carry the tainted past with every further transfer. (There are no holder in due course for such assets).
Hence Banks which will allow transactions of Cryptos will be committing offence under AML regulations.
As an ex Banker, I request all the Bank Chair persons to instruct their branch managers to keep their distance from Bitcoins and other cryptos.
Regards
Naavi
