The Indian government is considering the closure of the local cryptocurrency exchanges in an attempt to curb money laundering.
The news comes hours after the most popular cryptocurrency – the Bitcoin has broken another price record passing $7000 per coin and briefly reaching $7300. The surge was driven by the announcement of the US-based derivatives marketplace operator CME Group, which owns the largest derivatives exchanges, to launch Bitcoin futures by the end of the year. This suggests that the cryptocurrency will get some sort of regulation and most likely will eventually be recognized as a legitimate financial instrument.

No more butter chicken!

In my opinion the move of the India' Government to ban the bitcoin dealers wouldn't work. Instead It would be better to adopt bitcoin as future currency and therefore emphasize strictly on transactions.

Well, India is simply keeping its strict line of banning all transactions related to Forex trading. Is it a wise decision to close such huge market for the industry?! I do not know, only future will tell.

S. Ganesh Kumar, a director of the Reserve Bank of India (RBI), the country’s c-bank and main financial regulator, said that the country would not recognize the Bitcoin or any other cryptocurrency as a legal tender.
“Our current position on bitcoins is that we will not be using it for any payments and settlements…though the technology underlying crypto-currencies will not end”, said Kumar at a banking conference in Mumbai, quoted by local media.

Well, a legal tender and legitimate medium of exchange are different concepts. What they have actually rejected is the legal tender, which does not mean it is illegal
In the occasion they did designate it as legal tender, then vendors would have no choice but to accept it as a form of payment. Therefore , not making it a legal tender, leaves the choice to vendor on whether to accept it or not