Bitcoin News

India’s Central Bank Responds To Supreme Court Crypto Banking Ban Petitions

Following a ban on all Rupee backed crypto currency trading in India since the beginning of July of 2018, it appears that the Indian Supreme court is reopening the discussion.  The hearings which will be in conjunction with the Indian Central bank, are expected to start this week.  This has added to the speculation that a ruling in favor of Rupee backed crypto currency trading will move forward. While there are many arguments for why crypto currency trading should be banned in India, a favorable future employment picture is driving the argument for those in favor of removing the ban.

Reports shows that authorities are considering classifying Indian crypto currencies as commodities. This is occurring on the heals of efforts by the Indian Securities and Exchange organization who have been sending representatives around the globe to learn more about initial coin offerings.

In its annual report, SEBI revealed that it has sent government officials to Japan, the UK, and Switzerland to study cryptocurrency regulations in overseas markets with active digital asset exchanges and communities.

The annual SEBI report stated that government authorities visited the United Kingdom, Japan and Switzerland to evaluate the regulations that are used in different countries and experience the inner workings of crypto currency exchanges as well as the communities that trade these assets.

The Central Bank Weighs In

The government reevaluated the technology used to create cryptocurrency which gave CEOs of crypto exchanges optimism.  This enthusiasm is offset by the Reserve Bank of India who appears to be taking a protective stance to make sure investors are not scammed.  The RBI states that victims of scams could lose all of their wealth especially since crypto currencies can be extremely volatile. This could generate public distrust and cast a cloud over the use of crypto currencies. Bitcoin has fallen from $19,000 to below $6,000 since December of 2017.  

Many of the CEO’s of crypto exchanges describe a situation where they are ready to move forward. CEO’s hope that the new analysis by governments evaluating technology used to drive a Rupee backed coin, will provide the backdrop for a positive ruling.

Some of the volatility associated with crypto trading has been muted. That’s because large institutions have stepped in to invest in custodial, trading and exchange management.  The price of bitcoin has experienced the least amount of historical volatility in August; nearly a 14-month low.

Strong Jobs Growth Buoys Sentiment

One of the benefits of increasing India’s exposure to blockchain technology and crypto exchanges is the large increase in job growth in Asian blockchain related jobs. This issue has not gone unnoticed by the Reserve Bank of India.  A nearly 50% increase in blockchain related employment throughout Asia has provided a favorable backdrop. The RBI is fully aware that a complete ban on crypto currency exchanges could isolate India, allowing its neighbors to take advantage of a global technology revolution.