NEW DELHI (India) – A pronunciation by the Reverse Bank of India barring all banks and financial institutions form dealing in virtual currencies has had an adverse effect on the overall cryptocurrency landscape. The sell-off that has come to be in recent months can be attributed to such actions as centralized authorities continue to crack the whip on decentralized currencies.
India Crypto Ban
The new policy according to blockchain and cryptocurrency analyst Vikram Nikkam does not come as a surprise given that centralized financial institutions will always oppose Bitcoin (BTC) and other de-centralized currency. According to the analyst, such institutions continue to oppose the emerging currencies for fear of losing powers that control the economy.
Why India’s central bank doesn’t trust cryptocurrencies❓
— IndiaBits (@indiabits21) July 12, 2018
“The RBI….like all others that are pro centralized currency are going to try their best to squash all decentralized currencies. They haven’t been successful so far with their press statements and commented so this directive is their new approach to tackling the ‘monster’ that is lurking in the shadows,” said Mr. Nikkam.
The Reserve Bank of India ban has adversely affected the country’s market as people who had started to take a keen interest in the emerging spectacle have already taken a step back. The fact that financial institutions cannot facilitate cryptocurrencies transactions all but makes it impossible to pursue investment opportunities in the sector.
India’s crypto market could, however, receive a boost on the government launching a national cryptocurrency. A cryptocurrency backed by fiat cash, in this case, will help underscore the benefits of virtual currencies such as quick transfer speeds which could help change the perception about such currencies.
Thailand Crack on Crypto Firms
India’s legislation is not the only one that has had an adverse effect on the larger crypto market. Thailand another emerging market for crypto assets has blocked a number of firms from servicing the needs of people in the burgeoning sector.
Thai Securities and Exchange Commission has only approved seven firms to legally carry out cryptocurrency operations from an initial list of over 20 firms. Five of the firms are crypto exchanges while the other two are cryptocurrency dealers.