After false alarms about India banning everything to do with cryptocurrencies, CoinTelegraph published an interview with three of the biggest Indian exchanges, shedding light on the fact that it was all FUD and rumors. They confirmed that the previously published document issued by the Ministry of Finance was misinterpreted.
The Ministry refuted claims of India banning the entire ecosystem, as previously assumed. They added that the only bans they're discussing are those of a criminal nature – same as with cash and any other type of currency or medium of exchange.
Mohit Kalra, the CEO of Coinsecure, calmed investors by stating that the government won't be banning their investments and advised them not to pay attention to rumors and fake news.
“Like Arun Jaitley said, we'll put a stop to illegal activities which use Bitcoin and other currencies. We advise clients exercise restraint against selling at lower prices”, Kaira said for CoinTelegraph
Sunny Ray, the founder of Unocoin, said the media misinterpreted Jaitley's statement who said that the only bans incoming are those towards transactions of an illegal nature. Jaitley also stated that Bitcoin is not legal tender in any jurisdiction, including India. As such, merchants are not obligated to accept it for their goods and services.
“We're glad that the Minister recognized the importance and popularity of cryptocurrencies and decided to open up discussions surrounding them. We're neutral about what exactly was said but we're sorry about the misinterpretation.”, Ray said
The cofounder of ZebPay, Sandeep Goenka, stated that local exchanges support the Indian government in eliminating cryptocurrency viability for illegal actions and that all citizens and companies should do the same, whether we're talking about cryptocurrency, gold, or cash.
After a mass panic sale triggered by similar statements in South Korea, their Minister of Finance Kim Dong-Yeon reiterated that South Korean media published a rumor that the government intends to ban cryptocurrency trading on exchanges. This technically isn't possible if the government intends to respect its own laws about electronic business. Due to Dong-Yeon's clarifications, investors there can finally breathe a sigh of relief.
He restated that the government does not intend to ban, only regulate exchanges. Thus, Korea recently published a set of guidelines for merchants, making acceptance of cryptocurrency legal and clear. The new system necessitates the connecting of cash accounts with virtual ones to achieve legality. This is a very positive and encouraging move towards the cryptocurrency market, pushing virtual currencies into the mainstream – and it comes from a region which, until recently, seemed like a bad place to “go crypto”.
Australia also has some good news for us – their biggest banks stated that they have no plans to ban cryptocurrencies. This news comes as a polar opposite from JP Morgan, Citigroup, and BoA, as well as UK's Lloyds bank, Halifax, and Bank of Scotland who recently banned crypto purchases. It's important to note that the bans apply to credit cards only, not debit cards.
Australia and New Zealand Banking Group (AZN) reported that they're tracking transactions to recognize illegal and suspicious traffic and to protect their users from fraud. They do not, however, collaborate with exchanges and cryptocurrency issuers, as such means of exchange are not regulated and thus do not fall into the AZN's jurisdiction.
Australia's National Bank also warned investors that exchanges are not regulated and thus the country's institutions cannot protect them from fraud, exchange collapses, or hacker attacks.
Finally, some bad news which is certain to make the market even redder.
After banning all local ICOs and fiat-to-crypto conversions, China seems intent on driving the crypto economy out. They recently announced that all foreign ICOs will be blocked, too, and that they're currently in the process of putting together some regulatory frameworks to deal the final blow in cryptocurrencies' coffin behind the Great Firewall. The People's Bank of China already banned merchants from using foreign exchanges when they switched to them following last year's local exchange ban.
This is making more and more Chinese companies relocate to crypto-friendly countries like Switzerland and Canada – current crypto havens.
If you found this article useful or interesting, please consider donating to keep our operation running.