A month after India’s Central Bank banned banks from serving crypto exchanges, trading volumes are back to previous levels, seeing a sharp rise recently to $75 million as eth and bitcoin turn bullish.
“New investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher,” Shivam Thakral, chief executive of BuyUcoin, an India based crypto exchange, told reuters.
The surprising Central Bank order has been challenged in court due to having no legal basis as cryptos are not illegal in India.
Proponents thus argue the bank can not prevent the performance of a legal activity without a law from parliament.
That may have raised hopes the government will u-turn, but the global nature of cryptos means any action by the central bank would not have much of an effect on crypto-prices, so creating a magnetic allure especially during bullish runs.
“Unlike fiat currency, prices of virtual currencies are based on people’s beliefs and aspirations,” BuyUcoin’s Thakral said before adding:
“The long-term vision for us and the people who are investing now is that cryptocurrencies are here to stay.”
China remains the only country to have completely banned crypto trading, but even there it does seem as days go by that the ban isn’t very really.
A presenter at Edcon for example said authorities in China would leave you alone if your ICO is not directed at ordinary people like bus drivers, but is focused on the well to do lot.
While more widely entrepreneurs are finding loopholes and creative ways to subvert the ban and keep on championing the technological revolution. To that end, we leave you with the words of Stephen Gandel, who writing on Bloomberg says:
“The barbarians, it seems, are still pretty hostile when it comes to Bitcoin and its brethren…
It’s fair to ask how much of the skepticism stems from legitimate questions about the viability of cryptocurrencies and how much stems from their threat to the existing financial order.
In part, digital currencies, and the initial coin offerings that raise money for them, as well as the capital framework, where investors put money into a so-called coin instead a traditional corporate capital structure, differ from Wall Street’s normal way of doing business.
Nearly 30 years after the close of Milken’s Drexel Burnham Lambert, and nearly 10 years after the financial crisis, the current order still works pretty well for many of those at the Milken conference. They’re wary of finding themselves on the other side of the gate.”