What happened to India s white-hot bitcoin and cryptocurrency market?

Written by
Written by

A chill has set into the cryptocurrency market, especially te India.

Tightening regulation and policy ambiguity have sucked the life out of trading te the past few months, however industry insiders say the phase may be improvised.

&ldquo,The market is very, very abate,&rdquo, said Sathvik Vishwanath, co-founder and CEO of Unocoin, a bitcoin exchange.

From a peak of 15,000 units vanaf day towards the end of 2018, cryptocurrency trade te India has declined by almost 90% to a mere 1,500 units spil of March 2018, industry experts say.

Even the value of such currencies has taken a severe striking. For example, Bitcoin, the most popular virtual currency, went from $1,000 a lump at the embark of 2018 to overheen $20,000 by the year end. Now it has whipsawed back to below $8,000.

All this is getting reflected te investor rente. A few months ago, the top e-currency exchanges of India were adding inbetween 200,000 and 300,000 investors a month, now that has diminished to around 50,000 at the most.

And the various stakeholders are pointing largely to the regulatory constraints and ambiguity across countries.

&ldquo,Bijzonder from Japan, no other country, including India, has clarified its stand on cryptocurrencies. There is fear among people overheen uncertainty of regulation and that is the reason they are holding back,&rdquo, Nischal Shetty, founder and CEO of WazirX, another Indian cryptocurrency exchange, told Quartz.

While bitcoin and its peers are neither legal strafgevangenis illegal ter India, the government and the banking regulator have cautioned investors to stay away from them.

Some top banks like the State Bankgebouw of India, HDFC Bankgebouw, and Citibank have either prohibited or issued strong advisories against using their debit and credit cards for cryptocurrency-related transactions. This has spooked investors and the exchanges are fuming.

&ldquo,Wij don&rsquo,t know what is the underlying information that the banks have that they have turned so negative. The regulators had only issued cautionary statements but banks have gone several steps ahead and have just determined that it isn&rsquo,t good for people,&rdquo, said Shetty.

Yet, trading te thesis currencies is not banned. A committee chaired by Subhash Garg, secretary of economic affairs te the finance ministry, is working on draft regulations for cryptocurrencies. Thesis are likely to be ter place by the end of the next financial year. Till then, thesis digital coins will stay ter the grey zone.

However, the exchanges are taking heart ter the fact that such lacklustre phases have come and gone for the virtual currency ecosystem ter India. &ldquo,Wij have seen such vapid phases a few times ter the last four-five years (everzwijn since bitcoin trading ter India has picked up). And so hopefully the tide will turn soon,&rdquo, said Vishwanath.

Related movie: Bitcoin (BTC) Morning Update: Target $70,000

Leave a Reply

Your email address will not be published. Required fields are marked *