Indian Banks Act Slow to Accept Crypto Industry Despite RBI’s Approval

Indian Banks Act Slow to Accept Crypto Industry Despite RBI’s Approval

The repeal of a blanket ban on cryptocurrencies in March by India’s central bank, the Reserve Bank of India, has been a boon to the thriving crypto industry in India — with the launch of new exchanges being a catalyst. 

This is despite the country being one of the most severely affected nations by the COVID-19 pandemic, which has led to a deepening economic crisis across the nation. For investors and fintech innovators alike, cryptocurrency and blockchain technology have proven to be a much-needed respite in these challenging times.

Repealing the blanket ban was not the ultimate solution that most had hoped it to be, as even after the repealing, there have been incidences of banks declining to process crypto transactions. However, there is more regulatory clarity in the industry now than there was back in 2017 when the degree of skepticism and confusion was at a high level.

A rumor of a note that was moved within the Ministry of Finance for intradepartmental consultation regarding a draft law that sought to ban all cryptocurrency-related activity — with a heavy fine or even a jail term of up to 10 years for offenders — had been swirling around, but it has recently been debunked. Corporate advisory firm AKM Global said that if the law gets passed in its current form, it “would completely decimate the crypto-industry in India.” This rumor brought back fears to the crypto community. However, Nischal Shetty, the CEO of crypto exchange WazirX, maintains faith in the government, telling Cointelegraph in an email exchange:

“On the day the news about the ‘note’ broke out, it created some panic among the community. But that’s all. We are not seeing any difference in the trading behaviour on WazirX since then. There have been speculations about crypto ban in the past as well. With more than 5 million crypto users in India, I’m confident that our Prime Minister won’t let us down.”

This positive outlook about the governing bodies is not shared by all experts in the industry. Siddharth Sogani, the founder of Crebaco — a research, rating and intel company for blockchain — fears the inadequate dissemination of knowledge within the governing bodies and iterates the need for a separate committee:

“Our government released the draft bill on crypto which was made by interns of National Institute of Financial Policy and Planning, without consulting even one industry or subject matter expert. There are several aspects to be taken care of while making policies in India. […] A dedicated government body should be there which regulates this industry, without that it is impossible to regulate crypto in India.”

In addition to the RBI, a few private banks have been reluctant to process crypto transactions for various firms in the industry. However, there is wide speculation as to why that is; it could just be a lack of understanding and knowledge of the industry as was seen with governing bodies. There might be, however, a deeper conflict of interest at play here. Sogani said: “Banks will always be against this industry globally because if crypto comes in action, P2P transactions will eliminate the need of third party bankers.”

In a more positive light, the skepticism of the banks could also be a function only of the limiting circumstances that they are subject to due to the lack of regulatory clarity maintained by the governing bodies like the RBI, according to Sogani:

“Banks in India are unclear how to treat Bitcoin transactions. They clearly don’t want to get their hands dirty when crypto regulations are not in place. Also, RBI had not removed or issued a new circular which tells the banks to start working with crypto companies again.”

However, in response to a right to information request filed by Harish BV, the co-founder of a local cryptocurrency exchange Unocoin, in late March, the RBI clearly stated that there are no restrictions on banks providing accounts to crypto firms and individual traders. This was the big RBI statement that banks were supposedly been waiting for, but the real quantitative impact remains to be seen.

Blockchain technology, cryptocurrency and transparency are what ledger technology offers and should ideally be a no-brainer for India where corruption and bribery are rampant, penetrating all walks of life. However, this potential has been marred by the lack of understanding and distorted portrayal of the facts by the mainstream media with a focus on the illicit activities that originate on the darknet.

Related: Crypto Regulatory Clarity in India: The Missing Piece to Mass Adoption

In India, blockchain technology has been embraced in various economic sectors like education and trade. Therefore, it is evident that the unique selling points of blockchain technology are being implemented, but skepticism surrounding cryptocurrency still exists. Elaborating on this, Gaurav Dahake, the CEO of crypto exchange Bitbns, stated:

“There’s confusion in terms of understanding the whole sector. Blockchain is good, cryptocurrency is bad seems to be the overall understanding, and traditional media has blown things out of proportion. Concerns revolve around money laundering, use in illicit activities. We as exchanges have tried addressing this.”

With all factors surrounding governance and regulatory bodies considered, it’s important to remember that blockchain technology is a disruption to the stipulated growth of the financial markets. Thus, it’s ideally not meant to co-exist within the rules, according to Sogani: “Crypto industry, specifically Bitcoin and its surrounding ecosystem, is designed to be above the regulators. Even when the RBI blanket ban was in force, P2P exchanges were blooming.”

In the absence of a proper regulatory framework, exchanges and other major players have been stepping up to self regulate and/or contribute to the policy framework, like Ripple’s recent proposal. Dahake further added: “We follow almost 60% of things that are usually prescribed to brokers or trading exchanges.”

With the RBI’s statement that there is no prohibition on banks to deal with crypto firms and traders, there is now a clear message to a demographic of 1.3 billion: There are no legal issues with holding and transacting in this asset class. The sheer enormity of the demographic is bound to have a significant impact on the global crypto industry, whose major players will look to invest and drive business in India. The RBI, the government and crypto firms will need to work together to sustain the growth seen in 2020.

Indeed, the crypto industry seems to be growing. The increase in interest is measured in terms of volume and the number of users in the leading cryptocurrency exchanges in India like WazirX — which was acquired by Binance in late 2019 — Bitbns, CoinDCX, just to name a few. Shetty told Cointelegraph that WazirX’s daily trading volumes have increased 10 times compared to pre-lockdown volumes, adding:

“The Indian crypto ecosystem has been rapidly growing ever since the Supreme Court struck down RBI’s banking ban. We’re seeing a steady growth in user signups every month. In fact, the Indian crypto industry is very optimistic about crypto’s future.”

Apart from the validation the industry received when the blanket ban was lifted by the Supreme Court, one of the integral reasons for this growth is the diminishing returns of the traditional capital markets. BSE Sensex and Nifty 50, indices that are considered to be representative of the country’s stock market and general investor sentiment, are both down approximately 15% this year despite the country’s stock markets rallying in May and June.

This superiority in return has also been observed when comparing the returns of Bitcoin to the Indian rupee against the popular asset classes in India, such as gold and fixed deposits. According to Dahake in an email conversation with Cointelegraph, this crash in market assets has forced investors to look for other avenues of returns in their portfolios, and crypto assets have answered the call, showing much higher returns than other asset classes:

“Equities return for 3 years is negative. FD returns have gone down from 8%–9% to 5.5% now over the last 5 years. Rupee has depreciated by over 20% with respect to the dollar in the last 2 years and by over 100% in the last 12 years. Bitcoin as a whole has outperformed massively all of these asset classes. So users are interested in diversifying into Bitcoin.”

Another reason for this growth is the dissemination of crypto education that has happened during the rigorous lockdown. Traditional investors have found the inclination to educate themselves about the cryptocurrency market due to the equity market crash, and rudimentary investors have found time to learn about the basics of blockchain technology and cryptocurrency to enable themselves to make more lucrative investments than those available in the traditional capital markets.

Source: www.cryptobitnews.co.uk


Bitcoin Exchange – Maine Cedar Railing

Bitcoin Exchange – Maine Cedar Railing

If it could possibly’t discover a match, it will get again to the trader with different phrases, much like his. Cryptocurrency exchanges are very similar to traditional stock exchanges.

In order to trade Bitcoin on an change, the consumer must have an account, and undergo a collection of steps to be verified. Remember that Bitcoin and alternative cryptocurrencies are a totally digital currency, and there aren’t any bodily Bitcoins. Trading cryptocurrencies is changing into more widespread as buyers around the globe turn out to be extra comfy with blockchain expertise and the exchanges that supply on-line crypto trading. Security enhancements for digital wallets proceed to improve as nicely, offering merchants more confidence that purchasing bitcoin is protected. CoinSwitch provides a cryptocurrency change aggregator platform that assist users trade cryptocurrencies with ease and at cheaper rates.

Traders choose these ways as a result of anonymity, as the trades aren’t audited or reported to exterior companies. However, a giant part of the OTC buying and selling activity takes place on cryptocurrency exchanges, as nicely. Some platforms likeBinance,Coinbase, andKraken, for example, provide such a service. To profit from it, the investor ought to arrange an account and pass an identity verification, in accordance with the KYC and AML policies, adopted by the particular exchange. Once the account is efficiently established, the trader can proceed with requesting a quote.

However, on the similar time, cryptocurrency exchanges have some core differences, when in comparison with conventional exchanges. For instance – the vast majority of cryptocurrency trading venues are unregulated. Being in a position to buy Bitcoin is the preliminary step to buying and selling in it. Just like trading a stock, Bitcoin exchanges charge transaction charges, which vary from 0 to 1%.

In fact, it exhibits merchants’ intentions, most of which may never materialize. If you want to find out what different investors are literally paying to buy cryptocurrencies, you need to verify the trade historical past. The basic rule of thumb, when it comes to crypto exchanges, is that the bigger the platform is, the fairer pricing coverage it offers. Or in other phrases – more liquidity means extra secure and honest prices. There are a number of ways for one to get involved in OTC trading, similar to via an electronic chat, telephone, and cryptocurrency ATMs.

  • First of all, by the time the courtroom reacts, all cash owned by the debtor could also be long siphoned from the trade and become untraceable.
  • The risk xcritical courses scam to verify the identification of merchants on exchanges, whether or not on the request of a court or an IP, enhances transparency and simplifies digital asset monitoring.
  • However, the effectiveness of such measures may still be uncertain.
  • These types of market outcomes won’t be going away any time quickly. Finding a dealer that has a great portfolio in cryptocurrencies will probably be the toughest a part of becoming a bitcoin futures holder. Cryptocurrency may be sent with out the intervention of third events, like a bank. If you wish to discover another one who wants to commerce Bitcoin with you in opposition to another coin, this may be fairly troublesome.

    Exchange Software Full-stack software program for digital asset and cryptocurrency trade operators. Brokerage Software Full-stack platform enabling brokerages to offer access to next era asset lessons. Wallet Solutions Enterprise digital asset pockets & custody software program. Asset Digitization Technology for establishments to create and handle security tokens using blockchain. eOTC Trading Platform OTC trading platform for crypto and digitized property.

    Founded in 2014, Poloniex is among the world’s main cryptocurrency exchanges. The crypto trade presents a secure trading setting with greater than a hundred different Bitcoin cryptocurrency pairings and superior tools and information evaluation for advanced traders.

    It permits the cryptocurrency buying and selling and customers to commerce over 400+ cryptocurrencies, together with a capability to purchase cryptocurrency with a credit card at the best price. If you wish to actively commerce cryptocurrencies for one another, Binance could possibly be the cheapest alternative. Its trading charges start at zero.1%, with easy avenues to further reductions. Simply by paying fees with BNB, it’s attainable to get a simple 25% low cost on buying and selling fees. Importantly, it’s additionally one of many world’s most liquid cryptocurrency exchanges, which can be key to saving cash by avoiding slippage.

    Now that bitcoin is obtainable on a number of the largest regulated exchanges and traded like a commodity, it’s being investigated and proved. The so-called “huge fish” are transferring on this cryptocurrency and bringing it more attention. The margins are also an obstacle to those who don’t have 10 thousand to 15 thousand dollars to spare to buy bitcoin futures. Futures trading in bitcoin is nowhere close to being totally established. Nevertheless, the fast adoption of this cryptocurrency has already been a boon to many who’ve made out like bandits with its bull market.

    Luckily, that is the explanation exchanges have been brought to life. A cryptocurrency change brings crypto consumers and crypto sellers collectively on one platform. When the amounts match, the exchange performs the commerce and the trade is definitive. On an change supply and demand are introduced together and you pay buying and selling fees, these costs vary between zero.05% and 0.25% per transaction.

    For instance, buyers and sellers can place restrict orders or market orders, and the brokering course of works the identical method it would with another type of asset. When a market order is selected, for example, the dealer authorizes the platform to take care of his coins and find the best possible value to execute the trade at. With a restrict order, on the other hand, the trader instructs the change to leap into a trade only if the value is under the ask or above the bid (relying on whether they’re promoting or buying), on the explicit moment. The cryptocurrency change serves as an intermediary that helps with the order matching and success and collects charges.

    Source: mainecedarrailing.com

    Author: woodmillofmaine


    Ebang to Establish Crypto Exchange and Mining Farms After Going Public

    Ebang to Establish Crypto Exchange and Mining Farms After Going Public

    Major Chinese Bitcoin (BTC) mining equipment maker Ebang, which is reportedly getting listed on Nasdaq Global Market later today, is planning to expand its business by setting up a cryptocurrency exchange and mining farms.

    As told to Cointelegraph by an Ebang representative in a recent interview, the company intends to carve out a unique role in the industry by building “a global blockchain and a digital economy industrial ecosystem.” That would include setting up a cryptocurrency exchange and mining facilities, the spokesperson elaborated:

    “We will soon establish our own mining farms with [a] flexible cooperation model […] as well as mining pools to sell our computing power and we will also start to set up [a] cryptocurrencies trading exchange.”

    Additionally, the Hangzhou-based company will “explore the application of blockchain technology into financial services, education and healthcare industries.”

    Getting listed on Nasdaq will help the crypto firm to pursue these plans, the Ebang representative added, since it will supposedly enhance its brand awareness and “attract more talent.” Being a publicly traded company could also help setting up a cryptocurrency exchange: 

    “Credit is the most important point for establishing the cryptocurrencies trading exchange, and a Nasdaq listed company regulated by U.S. Securities and Exchange Commission should be able to strictly control the compliance and safety of the transaction.”

    What cryptocurrency will become the main one in a year?
    BitcoinEthereum

    Such plans are also documented in filings the company submitted to the SEC, where it described setting a cryptocurrency exchange “in overseas jurisdictions.” Although Ebang is based in China, where cryptocurrency trade is outlawed, its holding company is incorporated in the Cayman Islands. 

    As previously reported by Cointelegraph, Ebang is expected to get listed on Nasdaq Global Market under the ticker EBON later today, on June 26. If the stock exchange launch goes through, it will become the second crypto mining company to go public in the United States after its competitor, fellow China-based firm Canaan.

    Ebang aims to raise up to $125 million, which could put its market value close to $800 million.

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    Source: www.cryptobitnews.co.uk


    Ebang to Establish Crypto Exchange and Mining Farms After Going Public By Cointelegraph

    Ebang to Establish Crypto Exchange and Mining Farms After Going Public By Cointelegraph

    Major Chinese (BTC) mining equipment maker Ebang, which is reportedly getting listed on Nasdaq Global Market later today, is planning to expand its business by setting up a cryptocurrency exchange and mining farms.

    As told to Cointelegraph by an Ebang representative in a recent interview, the company intends to carve out a unique role in the industry by building “a global blockchain and a digital economy industrial ecosystem.” That would include setting up a cryptocurrency exchange and mining facilities, the spokesperson elaborated:

    Continue Reading on Coin Telegraph

    Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

    Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

    Source: investlab.com

    Author: Cointelegraph

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    Ebang to Establish Crypto Exchange and Mining Farms After Going Public

    Ebang to Establish Crypto Exchange and Mining Farms After Going Public

    Major Chinese Bitcoin (BTC) mining equipment maker Ebang, which is reportedly getting listed on Nasdaq Global Market later today, is planning to expand its business by setting up a cryptocurrency exchange and mining farms.

    As told to Cointelegraph by an Ebang representative in a recent interview, the company intends to carve out a unique role in the industry by building “a global blockchain and a digital economy industrial ecosystem.” That would include setting up a cryptocurrency exchange and mining facilities, the spokesperson elaborated:

    “We will soon establish our own mining farms with [a] flexible cooperation model […] as well as mining pools to sell our computing power and we will also start to set up [a] cryptocurrencies trading exchange.”

    Additionally, the Hangzhou-based company will “explore the application of blockchain technology into financial services, education and healthcare industries.”

    Getting listed on Nasdaq will help the crypto firm to pursue these plans, the Ebang representative added, since it will supposedly enhance its brand awareness and “attract more talent.” Being a publicly traded company could also help setting up a cryptocurrency exchange: 

    “Credit is the most important point for establishing the cryptocurrencies trading exchange, and a Nasdaq listed company regulated by U.S. Securities and Exchange Commission should be able to strictly control the compliance and safety of the transaction.”

    Such plans are also documented in filings the company submitted to the SEC, where it described setting a cryptocurrency exchange “in overseas jurisdictions.” Although Ebang is based in China, where cryptocurrency trade is outlawed, its holding company is incorporated in the Cayman Islands. 

    As previously reported by Cointelegraph, Ebang is expected to get listed on Nasdaq Global Market under the ticker EBON later today, on June 26. If the stock exchange launch goes through, it will become the second crypto mining company to go public in the United States after its competitor, fellow China-based firm Canaan.

    Ebang aims to raise up to $125 million, which could put its market value close to $800 million.

    Source: tradingbtc.com


    Indian Banks Act Slow to Accept Crypto Industry Despite RBI’s Approval


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