Indian government does not appear to be in favor of banning cryptocurrency. Instead, they may allow and regulate it. According to indiatimes, A panel formed by the government to look into cryptocurrency does not seem to be in favor of banning it. Instead, it may suggest allowing cryptocurrency with riders.
Earlier, the Indian government had banned the transactions and trading in cryptocurrencies. Moreover, it had instructed the RBI to freeze the bank accounts of the cryptocurrency exchanges. As a result, the investors were not able to easily deposit money with the cryptocurrency exchanges. This had completely frozen the operation of the cryptocurrency exchanges. Moreover, the investors who had already invested in cryptocurrencies could not withdraw their money easily either.
Also, as a result, the cryptocurrency exchanges were not able to open any new accounts. However, since then the cryptocurrency exchanges have approached the Supreme Court. The next hearing in the matter is on July 20.
Lack of research:
RBI recently accepted that the instructions which are given to the bank were not given after proper research. As a result, it was not able to send the instructions based on technical grounds.
Bitcoin in Bearish Trend:
Currently, however, Bitcoin is again in a bearish trend. It has fallen to a two-month low. It is trading around $ 6800. It fell after the news of hacking of the South Korean exchange, CoinRail surfaced around 10th June.
If indeed, India as a market opens up for the cryptocurrencies, the cryptocurrencies will be able to gain a significant amount of traction. This is because the number of investors which are present in India is pretty large. As a result, the volumes will increase substantially.
It, however, remains to be seen whether Bitcoin is able to turn around or not. Currently, it seems like Bitcoin is on a downward trend. The problem with the downward trend is that the volumes are increasing each and every time it is breaking through the supports. This clearly indicates that the buy is not occurring and the existing holders are selling Bitcoins. If indeed, there is no positive news in the very near future, it can fall even further which can take it to new lows.
When you look at Bitcoin since the start of this year, it has fallen by approximately 60%. Still, it is showing no signs of recovery. This is one of the main problems which most of the investors in Bitcoin are facing. Unless and until it is not able to rise in a significant way, there will be no new buying from the existing investors or the newer investors. As a result, even a bit of selling will make it more downward significantly.
With RBI relenting on the operations of cryptocurrency exchanges, it seems like finally there is some positive news for Bitcoin and other cryptocurrencies.