In light of the Indian Banks suspending various accounts of the lead traders in Bitcoin, we have to wonder where this going, who and what is next?
India’s cryptocurrency market has been unregulated until the banks noticed an increasing number of substantial payments that they deemed suspicious. Tax authorities in India have sent notices to cryptocurrency investors that they will need to start paying capital gains for their trading with the virtual currency of Bitcoin.
The Bitcoin price plummeted after the trading accounts were suspended, having made a slight recovery recently.
India has seemingly taken a large disliking to the trading in their country as their Finance Minister, Arun Jaitley, blatantly called it a Ponzi scheme. Some banks have suspended accounts as mentioned earlier; others have been capped regarding cash withdrawals and others are subjected to critical scrutiny and could expect to possibly be suspended or capped.
This could be the start of strict regulations to be imposed or an absolute ban on Bitcoin or cryptocurrency as a whole.
Less than half a year ago, investors in India were positive about the future of Bitcoin and cryptocurrency. Then the question remains, “Is this the start of more sovereign countries putting a stop to it?”
Bitcoin is already illegal in the following countries: Algeria, Bolivia, Ecuador, Kyrgyzstan, Bangladesh, Nepal, and Ghana. An extensive amount of other countries is also threatening with bans and regulations of Bitcoin; this includes Russia, China, South Korea, Thailand, Taiwan, Germany, France, and Vietnam. Vietnam has expedited their legal framework for cryptocurrencies, and it will be presented to their government the end of January 2018.
The Nordic bank, Nordea, has also just recently banned it’s 31 000 employees from trading with Bitcoin or other cryptocurrencies.
Countries have gone up in arms about the trading of Cryptocurrencies. It is no shock that this has induced a global crash in value since mid-January.
The future of Cryptocurrencies is certainly unsure, but we can say with certainty the Blockchain has established itself as an invaluable resource.