Recently, there has been a mobility and a sudden increase in the volume of cryptocurrency trading in India. Despite the decision of the Indian Central Bank (RBI) in April 2018 to ban cryptocurrencies, the rise continues to take place. Cryptocurrency holders believe the market will continue to expand even after RBI’s ban will be actively implemented in July 2018.
After the RBI ban, the prices and daily trading volume of the cryptocurrencies continued to show elevation. According to Reuters , the lowest unit price of Bitcoin in India is around $9,270. This figure is much higher than the lowest bitcoin unit price of $5,250 which was after few days from the day the RBI announced the ban. The lowest crypto trade volume in the country seems to be on the rise as well. According to Pune, an India-based cryptographic exchange platform, daily trading volume has risen to about $75 million.
According to the reports, the market is full with traders wanting to benefit from this 3 month period before the ban becomes active. By doing this, traders can still obtain cryptocurrency while the bank is still providing services for crypto operations. Even when the RBI decision goes into effect, these investors will still be able to use the cryptocurrencies they receive for stock exchanges and trading on private platforms.
The Situation of Crypto Regulations in India
As well as RBI, Indian government is not very fond of cryptocurrencies. Since the beginning of the RBI, investors have warned against the risks of this cryptocurrency market. The bank has recently banned all banks and their affiliates from engaging in cryptographic money transactions. However, a startup company reported that the ban was contrary to the constitutional rights and took the matter to the court. The government defended its decision by stating that the cryptocurrency was used in the areas of money laundering and terrorism.
In February 2018, India’s Finance Minister Arun Jaitley stated that the ranting of crypto money should be banned. On the other hand, investors in the country are hoping that the government will issue a well-measured sanctions and regulations on cryptocurrency arrangements. According to reports circulating on the Shanghai market, the RBI, the Ministry of Finance and financial regulatory agencies are also developing a regulatory framework for cryptocurrencies as a joint team.