Will India shut down bitcoin exchanges?

The price of bitcoin continues to drive higher as the value of the digital currency touches above $7000 per BTC. Concerning the value of bitcoin, Indian government panel advice is to shut down cryptocurrency exchanges in the country. Will India shut down bitcoin exchanges soon?

3 November, AtoZForex Reports are overflowing as a government panel in India has proposed to shut down cryptocurrency dealers or exchanges to curb the use of virtual currencies in the country.

Will India shut down bitcoin exchanges?

The proposal came after the value of Bitcoin has skyrocketed regarding all major currencies globally. However, the market experts believe such a move by the government wouldn’t curb the use of cryptocurrencies. Some suggested instead of shutting down, the panel must stop buying and selling of bitcoin or cryptocurrencies in cash. This move can reduce illegalities in the country.

According to the report, experts also added the closure will lead people to buy cryptocurrencies from foreign exchanges. However, Indian central bank, the Reserve Bank of India (RBI), has refused to accept cryptocurrency citing security reasons.

Lakshmi – India’s own future virtual currency

There has been speculation of late that the Indian government may introduce its own virtual currency, code-named “Lakshmi”.  According to the report, “Lakshmi” would run under blockchain technology. However, RBI will solve several tricky questions before unveiling its own virtual currency.

However, according to the statement made by Indian Finance Minister Arun Jaitley in August, the government will take a proper stance on how it will deal with virtual currencies. Also, the government-appointed panel has already submitted a report regarding this issue. The primary reason that led cryptocurrencies to high volumes is the lower return given by traditional investments like gold and real estate.

Meanwhile, Credit Suisse Group AG Chief Executive Officer Tidjane Thiam stressed that bitcoin is the “very definition of a bubble”. According to Thiam:

“Most banks in the current state of regulation have little or no appetite to get involved in a currency which has such anti-money laundering challenges. From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble.” 

Think we missed something? Share your opinion with us in the comments section below.

Share Your Opinion, Write a Comment