Cryptocurrencies continue to be a problem for many countries and this time it is India. In recent days, several news sources have reported that India has decided to follow in China's footsteps and is therefore planning to take tougher action against crypto currencies. This news has spread like wildfire on the Internet and brought short-term losses to the crypto market.
"The Reserve Bank of India (RBI) wants to crack down on crypto currencies such as Bitcoin. The controversy here is that they are also considering a proposal for their own digital currency," reported the news page Quartz, calling it "the end of the road in India".
The publication of this message caused a massive price drop for Bitcoin and all other cryptocurrencies. The price of a bitcoin collapsed by up to $1000 USD to $6600. However, the price recovered as RBI clarified its position.
In a statement, RBI clarified Quartz's report and stated that although it planned to limit the use of cryptocurrencies, it did not prohibit them completely.
According to RBI, they distance themselves from all relationships with digital asset companies (ICO projects). Other banks are to follow in RBI's footsteps in the coming months.
"Currently, all banks in India are subject to RBI's regulations, which means that cryptocurrency companies will no longer be able to rely on Indian banks to execute their transactions," The Merkle explains. "This is a disappointing development, but it does not mean that it is a complete ban on the industry.
For the country's stock exchanges and exchange offices, this hard line from the central bank obviously means that their customers will no longer be able to deposit money to buy bitcoins and other cryptocurrencies.
The bank will have to inform its customers that they may no longer use their bank accounts, credit or debit cards to buy Bitcoins or other virtual currencies.
The clarification clearly had an effect on Bitcoin's price. The price rose to $300 USD, or about 5%, and currently seems to stabilize at around $7000 USD.
Looking back, it has to be said that the FUD ("fear, uncertainty and doubt") that India plans to completely ban cryptocurrencies turned out to be unconfirmed. Since the RBI is merely a central bank and not a legislative authority, it would be impossible to impose a ban on crypto currencies. Only three government bodies in India are authorised to issue such an order - the state government, the central government or the Indian legal department.
Therefore, RBI's "ban" will only have influence within India. Companies as well as individual investors can still carry out transactions with cryptocurrencies, they only have to look for stock exchanges which have their bank accounts outside the country.
My conclusion:
In my opinion, the decision of the Indian authorities with this ban to put a stop to the misuse of cryptocurrencies in illegal activities will only stop such things for a short time. Via markets like LocalBitcoins you will still be able to exchange your cryptocurrencies.
But this is once again one of these worldwide developments in the crypto market, which strengthens my belief in privacy coins like DeepOnion. DeepOnion guarantees my anonymity as a person in crypto transactions, even though the governments are still trying hard to regulate crypto. The cry for more privacy is growing day by day. Now it's time to drop Bitcoin and start to use DeepOnion as an anonymous coin passing through the Tor network and hidding all traces.
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- To be continued...
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