Indian Cryptocurrency Market is on the rise despite Government ban. India was an enormous market for cryptocurrency, once responsible for 10 percent of all Bitcoin transactions, but the country’s central bank
banned financial institutions from processing the orders of cryptocurrency exchanges on the 4th of April 2018.
According to a report in Reuters, despite Governmental ban, instead of harming the industry, trade volumes and prices have actually surged in the month since the decision.
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A reason for this could be because of the three-month window that the Reserve Bank of India has given to businesses to comply with its ruling; people are rushing to take advantage of their last chance to profit.
The ban was apparently the end result of the committees set up by the government to decide on the future of cryptocurrency in the country. The decision was not surprising; the finance minister made it clear in February that cryptocurrency is not considered legal tender in India, at one point even comparing it to a Ponzi scheme. Cryptocurrency exchanges have also been
raided by the tax authority.
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At the time of the decision, the Indian cryptocurrency market was estimated at more than 5 million investors transacting 2-3 billion INR daily at the country’s 12 operational cryptocurrency exchanges. One petition against the decision gathered 22,000 signatures in only 5 days.
However, Since the decision, the price of Bitcoin in India has risen from 350,001 INR (5237 USD) to 618,000 rupees (9,270 USD).
What do you think about the optimism of cryptocurrency traders in India ?