Sunday, February 5, 2023

Bitcoin Tumbles as India Bars Cryptocurrency Trading

Bitcoin Tumbles as India Bars Cryptocurrency Trading

Since cryptocurrency’s drastic fall nearly a week ago, many are wondering about the future of bitcoin. Sure, things have begun showing signs of recovery, but bitcoin has undergone another acute drop since regulators in India have moved toward banning crypto trading.

Also see: Nobel Prize-Winning Paul Krugman Bashes Cryptocurrency in Tweetstorm

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India Not a Bitcoin Fan

Major action occurred in India over the weekend, before which bitcoin entered the market trading at over $12,000 USD. This didn’t last however, as the price plummeted by nearly $1,000 following India’s crackdown on digital currency exchanges. At press time, institutions like the State Bank of India, Axis Bank, HDFC Bank, ICICI Bank, and Yes Bank have either closed or imposed heavy limitations on bitcoin trading in India.

Several exchange platforms have been forced to suspend their business services. Koinex, for example, has released the following statement:

“In the past few days, many of our users have faced difficulties with Indian Rupee (INR) withdrawals on Koinex. A tussle between our payment service partner and their bank has caused an indefinite delay in the settlement of a large portion of deposits to Koinex in the past two weeks. In these circumstances, we were constrained to suspend INR withdrawals until the differences between the payment service provider and their bank are resolved.”

Anger from All Around

The Indian government has long been an enemy of bitcoin, saying the crypto will not be recognized as a valid currency and that it is the primary tool of those looking to commit financial fraud.

Additionally, the country’s top tax agency recently began sending notices to several digital currency owners asking them to pay up after it was discovered that over $3 billion worth of transactions have occurred within the nation’s financial spectrum.

But bitcoin isn’t just experiencing aggression overseas. New York-based investment portfolio manager Steve Chiavarone also doesn’t support bitcoin, saying it is causing the biggest hike in American greed in approximately ten years.

While discussing cryptocurrency with CNBC, Chiavarone explained, “It’s the first sign of greed since the Great Recession. It’s indicative of rising risk appetites which will drive equity markets higher almost regardless of what happens with bitcoin.”

Protection and Regulation to Increase?

In addition, the Securities and Exchange Commission (SEC) has released a letter saying that it was refusing to approve any funds traded through cryptocurrency exchanges granted investor protections remained limited:

“A number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.”

The incessant crackdowns are leading to doubt among some enthusiasts, causing many to wonder if the bitcoin market is meeting a slow doom. Bitsonline will continue to bring you more information as it develops.

Is bitcoin at an end, or can things only go up from here? Post your comments below.

Images via Pixabay

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