Considering the 2017 rally of crypto prices, regulators are quick to take action during the early part of 2018 regarding cryptocurrencies. India is one of the countries that decided to control the crypto market. Last month, India’s central bank decided to stop regulated lenders from facilitating cryptocurrency transactions.
What happened next was something unexpected. In fact, there was a sudden rush of investors going after cryptocurrencies in India. Experts are seeing this as people rushing to take advantage of the three-month window period issued by India’s Central Bank before crypto traders and exchanges no longer have a space in India.
Getting Cryptos While It Lasts
One of the things that make people invest their rupees on cryptos is because they can later swap for other coins using private trading platforms even after the three-month grace period given by the Reserve Bank of India.
If you will ask Shivam Thakral, the chief executive of the cryptocurrency exchange BuyUcoin, “There is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms”.
He also mentioned that “New investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher”.
Price of Bitcoin Back Up
Bitcoin price is up again as it is trading above $9,000. It has recovered after a low after India’s Central Bank announced its plans for cryptocurrency exchanges. There was also a sharp recovery on the part of cryptocurrencies reaching as high as $75 million. That was close to the numbers right before the ban.
Tough Stance on Cryptos
India has a tough stance when it comes to cryptocurrencies. However, they are not the first country to ever have this kind of stance. China has banned both ICO and crypto exchanges as well. As for India, the country’s officials fear that it can be used to finance illegal activities.
However, many investors are quite hopeful that things aren’t going to stay that way. A lot are quite optimistic that the central bank is going to regulate rather than throw a ban on crypto activities. In reality, nothing is actually final yet. A panel composing of members from the central bank, the finance ministry as well as the Securities and Exchange Board of India are expected to have a recommendation on what exactly to do next.
Regardless of the banking ban, the co-founder and head of business at Coindelta, Shubham Yadav believes that people are still going to trade cryptocurrencies.
So what exactly happens next? Once the prohibition is in effect, peer-to-peer networks or social applications such as Telegram are most likely going to be used.
However, for the meantime, those who truly believe in the power of cryptocurrencies are still not yet done challenging central bank’s move. They are planning to cite constitutional issues hoping to reverse the decision.
So what should investors do? It is possible that a lot are doing a “wait and see” approach. However, investors have no other choice but to stay optimistic.