Investors in India are hopeful that cryptocurrency trading will continue despite the central bank's ban. The price of digital assets is rising in the country, and the volume of cryptocurrency trading has increased sharply.
After the Central Bank of India banned local banks and legal financial institutions from carrying out digital currency related activities, the volume of cryptocurrency trading in the country has increased sharply amid the current bullish trend. Exchanges and market participants believe that citizens are trying to make the most of the three months provided by the bank, after which the ban will come into force.
“The market believes that the government will not ban cryptocurrency trading, and even if formal banking channels cannot be used, citizens can switch to cryptocurrency trading platforms,” says Shivam Thakral, head of the BuyUcoin exchange.
This opinion is encouraging local investors to exchange rupees for crypto coins. which can later be exchanged for any other tokens through private trading service providers even after the remaining two months.
“New investors are entering the market and existing ones are becoming interested in cryptocurrencies again as the price of digital assets rises,” says Thakral.
As of May 4, the price of BTC has risen to 618,000 rupees ($9,270), up 76% from the figure recorded at the time of the central bank’s announcement a month ago. Daily volume has risen to an average of US$75 million, close to levels recorded before the central bank's announcement.
Some government officials in India have hinted that cryptocurrency should be banned entirely as it facilitates illegal activities, but local investors are hopeful the government will not take such a decision.
A panel of representatives from the central bank, the finance ministry and the Securities and Exchange Board India will soon develop guidelineson how investors should behave.
After implementing central bank ban Cryptocurrency trading will likely move to peer-to-peer systems or social media apps such as Telegram. Some analysts believe that by banning banks from engaging in cryptocurrency activities, the regulator could further encourage illegal transactions...
However, investors are confident that they will win in the end.
“Unlike fiat currencies, cryptocurrency prices depend on the beliefs and aspirations of investors. We and investors are confident that cryptocurrency is here to stay,” says Thakral.
According to https://chaining.ru
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