Ban All Crypto ‘Dealers’, India Committee Reportedly Tells Government
From Cointelegraph
India is reportedly considering Chinese-style exchange ban for Bitcoin and cryptocurrency according to local media reports.Read more:A brief article in today’s Economic Times names an unknown government “committee” as having advised lawmakers to “close” merchants and other “dealers” active in Bitcoin and altcoins.
No background reasoning was given for the committee’s recommendation, which comes as Bitcoin flourishes in both price and volume in India and in permissive jurisdictions around the world.
Hesham Reyman, CEO of Indian exchange Bitxoxo, told the publication the government should focus on “curbing” sales of cryptocurrency involving cash instead of seeking a ban.
At the same time, Forbes India this week carried a full feature on fellow major exchange Zebpay, which is currently adding around 200,000 users to its app-based trading platform every month.
Some people think this type of thing will actually increase bitcoin's value and liken it to black markets and drugs. I however don't think that line of reasoning applies since crypto currencies don't share the same physical addiction and mind altering properties that help drive demand and price for drugs.
Leave your thoughts in the comments below.
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sad to see some people resisting the inevitable technological revolution u can not stop like like no one can stop the free press
It would probably only raise the price of BTC in India because they would have to pay a premium for an "illegal" transaction. I don't think that it would raise prices outside of India...at least no initially. Just my thoughts.
But if they have to pay a premium and possibly face criminal charges themselves why would they use bitcoin at all?
The only reason I can think of is to make illegal purchases on dark markets for things like drugs. If bitcoin is just being used as a means to buy stuff from the dark markets then it's usage overall will go down there and overall demand in that region should fall. If it's enough of a hit that may spill over into global demand and price dipping.
I'm not sure how much volume India represents
They are probably using it as a hedge against inflation. I believe the government took away their large denomination bills. BTC could also be used to store value and wealth, and for speculative purposes.
There are plenty of legal ways to store wealth.
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