Sunday, 23 September, 2018

Bitcoin Ban in India is a Rumour and FUD by Indian Media

Nellie Chapman | 01 February, 2018, 16:41

Mr. Khurana said BACC had hoped Mr. Jaitley would announce the government was starting to look into how to regulate cryptocurrencies.

India's Finance Minister Arun Jaitley hinted at a crackdown on cryptocurrencies to eliminate financing of unlawful activities, but hopes to explore the blockchain technology as the country continues its push toward a digital economy.

Since reaching a peak of nearly $20,000 in early December after the introduction of futures contracts on regulated exchanges in the USA, a series of negative news has buffeted Bitcoin and rival cryptocurrencies, with losses intensifying since the start of 2018.

Bitcoin prices peaked at more than $19,600 last month, but have almost halved in value since, damped by fears that regulators could clamp down on the cryptocurrency in a bid to curb speculation. The scrutiny led to several exchanges in India to suspend operations amid fears they could violate anti-money laundering and financial terrorism laws. Indian states started examining that potential past year. There is NO BAN in India on digital currencies.

The employees and owners of the country's crypto exchanges are, understandably, nervous.

"After today's announcement, people are getting scared", said Anshul Vashist, Delhi-based support manager at the cryptocurrency exchange Coinsecure. However, we cannot deny the fact that there could be more strict actions and measures against trading bitcoin in India. Coinsecure has a volume of about 100 coins a day, he said. On Unocoin, the bitcoin prices had hit a high of Rs 6.7 lakh.

Ajeet Khurana, head of the Blockchain and Cryptocurrency Committee of India, which represents cryptocurrency exchanges, said the language wasn't a surprise. Some recent reports have revealed that several banks had frozen accounts of such exchanges in the country while the Registrar of Companies (ROC) had stopped registering companies that meant to act like cryptocurrency exchanges.