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India FSDC to Ban Crypto: Buying, selling, conversion of Cryptos and their use numbered

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Financial Stability and Development Council (FSDC) of India has called for a sweeping ‘ban’ on the use of ‘private’ cryptocurrencies in India.

India’s most important financial risk studying panel called the Financial Stability and Development Council (FSDC) chaired by the Finance Minister has called for a sweeping ‘ban’ on the use of ‘private’ cryptocurrencies in India.  This could well be the last straw in the Indian cryptocurrency ecosystem which has been fighting a losing battle against the country’s policymakers.

 

Panel study

In December 2017, the government of India had set up a study panel to assess the digital currency use and utility in the Indian context. The submission of the draft regulations in July was delayed with representatives from the Reserve Bank of India and the SEBI, the premier market regulator in the country.

With the panel needing time, RBI had categorically stopped banks from allowing crypto-based transactions by merchants in July itself.

Therefore, the current proposal of considering a ‘blanket ban’ does not appear to be a surprise.

RBI

According to the Indian government’s Press Information Bureau (PIB):

 “The council…deliberated on the issues and challenges of crypto assets/currency and was briefed about the deliberations in the high-level committee chaired by the secretary (economic affairs) to devise an appropriate legal framework to ban the use of private cryptocurrencies in India,”

 

Russia sought a greater role for international regulatory collaboration

Earlier in the week, Russian FATF wants greater control on crypto trade worth $9,000. Crypto-citizens of Russian confederacy has one more issue to worry about, thanks to the latest announcement by financial watchdog based out of Paris – FATF (Financial Action Task Force) as of Oct 19, 2018.

According to FATF, “As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets.”

 

FATF Rules

FATF had introduced rules for crypto exchanges in June a step forward from the non-binding guidelines set up by the organization back in June 2015. The key aspects that are introduced are the subjection of cryptocurrencies to AML as well as CFT or Counter-terrorism Financing.

 

Way Forward

The key focus of FATF is the role of a facilitator, an overarching organization working with regulatory bodies of different nations so as to overcome the issues, limitations and other troubling perspectives of cryptocurrencies. The organization’s primary focus currently is to work with countries which have banned cryptocurrencies and address concerns with respect to Anti-Money Laundering and to report trading operations which are considered to be illegal, Counter-Terrorism Financing (CFT) regulations.

However, specific to the Indian ecosystem, the regulatory bodies are not considering cryptocurrencies as legalized digital assets and do not acknowledge their use in the banking system. In the latest incident, start-up owners were held in legal custody for setting-up of an ATM in cryptocurrencies in Bengaluru, leading to widespread protests by members of the industry.

The legal attempts by these stakeholders to get the government to reconsider have all led to the Council declaring a ‘blanket ban’ on their use and trading in the country.

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Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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