Bitcoin Price Drops In India Due To Ban Plans

Cryptocurrency tradings in India are being affected by regulations and a wider ban by banks. Representatives state that bitcoin trading has declined by 90 percent over the past two months. In India, cryptocurrencies are not considered as legal means of exchanges and authorities are not warming to their use. During the same period, major Indian banks are making efforts to restrict tradings prior to the implementation of new regulations.

Indian exchanging platforms are going through a rough stage as doubts hover over the potential of cryptocurrencies. Authorities in Delhi have issued numerous notices and have debilitated to stop cryptocurrency criminal activities. They have over and again expressed that cryptos, such as bitcoin, are not viewed as legitimate currencies in India. Notwithstanding, there is yet to be a legal regulation put in place to support this. Even though the move is ongoing, regulations will be revealed soon.

Indian banks are however taking matters into their own hands even though the regulations are yet to be adopted with no order from the Reserve Bank of India (RBI), commercial banks have been restricting crypto exchanges. The nation’s leading financial institutions, including Citibank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and the State Bank of India, have officially suspended exchanging records of bitcoin trades. They have likewise forced measures to confine crypto-related exchanges operated by ordinary citizens, with two banks telling clients they can’t utilize their credit, charge and prepaid cards to cryptocurrencies.

This move by banks has had a negative impact on local bitcoin trading platforms. According to Mohit Kalra, chief executive of Coinsecure, “There is a 90 percent drop in the volume of trade across all Indian exchanges, our volumes are down from around 300-400 bitcoins daily in December to about 30-40 bitcoins a day now.”