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Bitcoin was trading at an all-time high of US$ 61,556.59 over the weekend. On early Monday morning, the giant crypto coin started dropping amid a crypto ban report from India.
The world's strongest electronic currency was in retreat mode on the first day of the week, declining almost 9 per cent to the intraday low of US$ 54,790 per token. However, it has regained over 3 per cent to nearly US$ 57,000 from its low (noted at 9:55 AM ET).
India could become one of the biggest crypto markets globally, but a ban on cryptocurrencies there, would hurt Indian investors as well as crypto exchanges.
India accounts for more than 17.7 per cent of the world’s population. A ban on crypto will means a massive emerging market will be devoid of access to the biggest digital currencies.
Source: Kalkine Group @2020
Why Is India Against Crypto?
Indian regulators have raised concerns over anonymity nature of the cryptocurrency market and the high chances of fraud and illegal flow of money.
India is one of the top 10 worst-affected nations on the Global Terrorism Index 2020, has frequently emphasized that the obscurity of the blockchain-run currencies may be misused to aid terror-funding and money laundering.
Earlier, the finance minister of India, Nirmala Sitharaman, stated that India is not banning all options related to cryptocurrency or bitcoin and blockchain-backed fintech.
In 2018, the country’s central bank, Reserve Bank of India (RBI), directed banks through a circular to halt any transactions linked to private cryptocurrencies. That directive brought cryptocurrency trading in India to a halt for almost two years.
While responding to a lawsuit against the RBI’s order, the Supreme court scrapped the central bank’s directive based on disproportionality because no entity had suffered from any fraudulent activities or tricked by the crypto networks. The ban on cryptocurrency in India was uncalled for, the top court had ruled.
India is yet to release any official statement on the latest source-based ban report.
But the recent bitcoin or overall crypto market success is inevitable. That could lead India to reevaluate its complete crypto ban legislature.
