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2019: Reviewing the year so far, what you may have missed!

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Bitcoin crypto Updates 2019

We will be introducing Week in Review starting this week. Before we get to that, we wanted to give you the scoop of important updates that took place in Blockchain and Crypto space so far this year.  If we missed any, do let us know.

This could be considered Part 2 of our original Bull Stampede ahead but with a focus on what happened in 2019.
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Of course, the biggest news for 2019 so far is Bitcoin remained the highest performing asset of any asset class. That is quite a feat especially emerging out of a bear market.

There are some constants in the space:  Bitfinex-Tether conundrum, Warren Buffet’s anti-BTC sentiments, Craig Wright’s claim to be Satoshi, and Christopher Giancarlo is still a hero for crypto lovers.

And, there are some indicative trends that are emerging:  failing fiat economies are embracing bitcoin as hedge against market and political pressures.

Let’s look at the news that has some relevance for bitcoin and blockchain space, not just glitter.

Binance hack: KYC data of its users exposed

One of the most popular and quick to fame Binance Crypto exchange has been hacked and the KYC documents of its users has been compromised.  The hackers are now blackmailing Binance for a ransom.


Coinbase Ventures is Empowering the Open Financial System

coinbaseCoinbase is working on the long term vision of blockchain and crypto by investing in the companies that are working to make financial system more inclusive.  The company’s website lists the companies in which Coinbase has already made an investment. 

South Korea’s partial ‘Regulation-Free’ zones open doors to Crypto

While the politicians in the US are busy making uninformed statements about Bitcoin and comparing it with USD and nefarious activities, South Korea is creating spaces to nurture blockchain technology.  Busan has been declared as the ‘regulation-free’ zone for Crypto operators to set their businesses.

Walmart applies for Digital Currency patent

WalmartThe quality of this application leaves us asking for more, nevertheless, Walmart has joined the race of digital currency using blockchain.  Walmart is the largest retail store in America and if it introduces Walmart coin with a boat load of discounts for using it – the adoption could be much easier and faster than Facebook’s Libra.  This space is getting hotter by the minute.

IRS issued letters to Crypto taxpayers

irs cryptocurrenciesInternal Revenue Service has issued notice letters (Format 6173, 6174, 6174-A) to close to 10,000 taxpayers who had cryptocurrency transactions. We will be providing more guidance on these letters and what to do if you received one yourself. Stay tuned.


New York establishes Research and Innovation Division to license Crypto businesses

“It will house the Department’s division responsible for licensing and supervising virtual currencies, and it will assess new efforts to use technology to address financial exclusion; identify and protect consumer data rights; and encourage innovations in the financial services marketplace to preserve New York’s competitiveness as a financial innovation hub,” read the Press Release.

TD Ameritrade launches Bitcoin futures trading

AmeritradeWith 1.2 Trillion dollars in assets under its management, TD Ameritrade’s launch of Bitcoin futures marks yet another milestone in the journey of Bitcoin mass adoption.  At this time, the futures are available for professional clients with a minimum of $25,000 in the account.


Treasury Secretary Steven Mnuchin calls Bitcoin a “National threat”

Steven MnuchinBitcoin is a “National threat” opined the Treasury Secretary, Steven Mnuchin, while holding a briefing on regulating cryptocurrency.  We do not expect Politicians to know a lot about bitcoin, however, being a Treasury Secretary – Steven Mnuchin was expected to be more ‘balanced’ in his approach, however, that was not the case.

Canada’s City of Richmond Hill accepts bitcoin for tax payments

City of Richmond Hill in Canada has approved a proposal to accept bitcoin to settle tax payments. “We believe that the demand for a digital currency payment option is only going to grow in the coming years, especially amongst millennials”, said Richmond Hill Deputy Mayor Joe Di Paola who moved the motion.

IRS’s leaked Cyber Crimes training deck sends ripples in the Crypto community

irs cryptocurrenciesBlanket Subpoenas against Apple, Google and Microsoft to backtrack the crypto activities was among the suggestions proposed in an IRS Cyber Crimes training deck that was leaked on the internet.  IRS is building capabilities to use Chainalysis to track the wallets back to the owners.

 

The Miami Dolphins have an official Cryptocurrency: Litecoin

Miami DolphinsWhat better way to get the word out than sports?  Litecoin managed to become the official cryptocurrency of The Miami Dolphins team giving them access to the NFL hardcore fan base.  Moves like these are paving the way for Cryptocurrency to the mainstream.

 

SEC is seeking blockchain data provider to help its efforts to monitor

sec commisionSecurities Exchange Commission of the United States intends to “procure Commercially Available Off-the-Shelf (COTS) enterprise-wide data subscription for blockchain ledger data to support its efforts to monitor risk, improve compliance, and inform Commission policy with respect to digital assets” according to its solicitation.  

Prime Factor Capital receives authorization as Alternative Investment Fund Manager

Prime Factor CapitalFinancial Conduct Authority (FCA) has authorized Prime Factor Capital to act as Alternative Investment Fund Manager.  Nic Niedermowwe, CEO of Prime Factor Capital, comments: “This is a significant milestone not just for Prime Factor, but for the industry as a whole. Being FCA-regulated brings us under the purview of one of the most recognised financial markets regulators globally. This is particularly relevant in the cryptocurrency space, which has repeatedly captured headlines for poor operating standards and even fraudulent activity. Investors need to be able to trust their managers not only to generate returns, but also to act responsibly and in their best interest.” 

Facebook is asked to halt its cryptocurrency, Libra, project

facebook libraThere is a new villain in the Cryptosphere and everyone is glad that it is ‘Facebook’. U.S. House of Representatives asked Facebook to appear in front of Congress to discuss its Libra project.  Governments have realized just how detrimental Facebook’s Libra could be to the Fiat’s existence and they are using all the excuses in the book to undermine it.

ErisX gets approval for physically settled Digital Asset Futures Contracts from CFTC

ERISXCommodity Futures Trading Commission (CFTC) has granted Derivatives Clearing Organization (DCO) license.  “As a registered DCO, the ErisX clearinghouse will offer the clearing of digital asset futures contracts traded on ErisX’s regulated derivatives market, which will launch later this year” read their official Medium post.

Coming soon: Ethereum on Amazon 

Ethereum-AmazonThanks to two startups, Clic Technology and Opporty, we could soon be able to use Ethereum to make purchases on Amazon.  These two startups are launching a browser extension that could bring the modern day token economy one step closer to reality.

Google integrates Chainlink 

Google-Chainlink“Possible applications are innumerable, but we’ve focused this post on a few that we think are of high and immediate utility: prediction marketplaces, futures contracts, and transaction privacy” read the announcement from Google which is integrating Chainlink into its initiative.

Rumors about Crypto ban in India intensify

Indian GovernmentFirst it was South Korea, then China, and now India. Rumors about the ban on cryptocurrency have intensified in India.  A draft bill made rounds on the internet that proposes severe punitive measures against people dealing in cryptos.

 

Apple unveils CryptoKit

Framework around Cryptographic Developer tools that enable Cryptographic operations has been unveiled by Apple under the name CryptoKit.

Microsoft adds BTC symbol to Excel 

Excel Btc logoNerds and crypto enthusiasts welcomed the addition of BTC sign to Microsoft’s Excel tool.  This gesture comes after Google and Apple both beat MS to the punch in adding the BTC sign.  Better late than remaining MS.

Financial Action Task Force (FATF) tightens the grip on Crypto exchange firms

FATF

FATF is closing in on ‘liberal’ crypto exchanges who have ignored the KYC and AML requirements.  Lot of the banking rules (like reporting the sender/receiver details under the ‘travel rules’ issued by FinCEN) could be applied to Crypto exchanges.  The direction of FATF was met with resistance from the crypto communities who argue that these rules are being designed to ‘stifle’ the blockchain and crypto revolution.

Montana catches up with times; exempts utility tokens from Securities Laws

Catching up with the times is not confined to Silicon Valley or NYC and Montana proved this by introducing House Bill 0584  which exempts utility tokens from Securities Laws as long there is a ‘utility’ for the token as defined in the bill.

Twitter and Square to make Bitcoin adoption INEVITABLE

Twitter SquareJack Dorsey, CEO of Twitter, is a known advocate of Bitcoin.  He is showing his love for Bitcoin into business by making bitcoin and crypto payments available on Square.  Square is a 30 Billion dollar company and bringing crypto payments to the platform can make adoption of Bitcoin and Crypto payments inevitable. 

Blockchains LLC buys Nevada based Kirkwood Bank

Kirkwood Bank of Nevada blockchainIn an effort to bring Crypto mainstream, Jeffrey Berns, CEO of Blockchains LLC, has acquired Nevada based Kirkwood Bank.  These dents into the mainstream financial service industry is what is needed to onboard blockchain businesses into our daily lives.

 

China includes Blockchain as one of their top strategic priorities

Deloitte’s 2019 Global Blockchain Survey included Blockchain regional analysis in which they shine light on China’s “real economy” initiative in which blockchain was included as the top strategic priority.

Euro 6.5 Million Real Estate deal conducted on Blockchain in Paris

A real estate deal worth Euro 6.5 Million was closed in Paris using Blockchain.  This transaction further cemented the utility of Blockchain in the Real Estate space.

MIT says it developed a cryptocurrency that reduces the bandwidth by 99%

MITIn a Press Release, MIT announced that it has developed a cryptocurrency that reduces data users to join the network and verify the transactions by 99%.  They have named this cryptocurrency as “Vault”.

 

LedgerX, a New York based clearing house, gets approval to physically settle bitcoin futures contracts

Ledger XThe first federally regulated exchange and clearing house to list and clear fully-collateralized, physically-settled bitcoin swaps and options for the institutional market, LedgerX LLC, is the first entity to get CFTC approval to physically settle the bitcoin futures contracts.

 

Congressman joins the blockchain race

Gary Cohn

Former chief economic adviser to President of the United States, Gary Cohn, joins Spring Labs, who also held Chief Operating Officer post at Goldman Sachs. Talk about acceptance of the mainstream business of blockchain.

Prominent crypto news site dies and resurrects from the dead in less than 3 days

CCN Site CRASHCCN.com (formerly CryptoCoinsNews.com) announced that they were going to shutdown following Google algorithm updates that slashed the mobile traffic for the website. However, thanks to the outrage and all the searches flooding their way – they announced that they were back from the dead.

Visa’s move may be RIP for Ripple

ripple updatesOur readers know that we are not big fans of Ripple, even to the peril of being on the wrong end of an otherwise lucrative investment.  We are willing to live with that chance. Swift, then Stellar, then IBM, all ventured into what Ripple was hoping to, however, the latest to enter this space is Visa. With its massive network and infrastructure, this could be something that can finally sing RIP for Ripple. Of course, we don’t want that to be the case, just to be clear.

Niall Ferguson retracts his comments about Crypto and joins Ampleforth

AmpleforthFirst he openly accepts that he was completely wrong about assuming Crypto being worthless, then, Niall Ferguson joins a crypto startup that wants to develop a stablecoin pegged against goods instead of dollar.

Justin Sun wins lunch bid with Warren Buffet and hopes to turn him into a blockchain believer

Warren Buffet4.6 Million, that’s what costs to sit with Warren Buffet at lunch.  Justin Sun has invited blockchain pundits to join him with Warren Buffet for lunch, and hopes to change his views on bitcoin and blockchain.

 

Facebook introduces its CopyCat coin

facebook libraSocial media giant, Facebook, will announce its own cryptocurrency that will facilitate messenger payments.  The verdict is still out on whether or not this is good for crypto space. You can read our opinion here.

Microsoft releases tool to verify smart contracts

MicrosoftFormal verification of smart contracts developed in solidity programming language is now possible, thanks to Microsoft.  These strides are necessary for building confidence in smart contracts and blockchain platforms.

SEC sues Kik

kikYou cannot raise $100 Million without appropriate meeting the requirements of the SEC. Kik was sued by SEC according to their official press release.


Google and Apple add Bitcoin sign to the keyboard

bitcoin keyboardIt may just be a sign for the ignoramus, but for bitcoiners it is a great sight to see Bitcoin sign on both Google and Apple keyboards.


IRS to issue, finally, guidance on Cryptocurrency taxation

irs cryptocurrenciesCryptocurrency taxation guidance might finally be available this year.  This guidance is expected sometime in June, however, even if we get this before the end of the year – that would be a great stamp of approval for the legitimacy of cryptocurrencies.

State Farm and USAA are working together to test a blockchain solution

Two insurance giants announced a joint subrogation solution to test blockchain technology in speedy processing of auto claims.

Ernst & Young and Deloitte join Ethereum network

EthereumFirst it was EY, and then Deloitte, both accounting behemoths are now on Ethereum network building their own service solutions for the blockchain space with Ethereum as the underlying platform.

 

Samsung Pay to utilize blockchain to onboard its 10 million users

Samsung PayKorea Herald reported that Samsung Pay could include crypto wallet that could give direct access to its 10 million users to the crypto world.

 

Montana exempts utility tokens from securities law

Who would have thought that Montana would lead the way for other states to wake up, but that is just what happened, Montana exempted utility tokens from the purview of securities law.

Robinhood comes to New York

Robinhood Trading platformCommission-free cryptocurrency trading platform enters New York marking a milestone. Robinhood’s entry into global financial hub is a ceremonious moment for the crypto fans.

 

AT&T becomes first mobile carrier to accept bitcoin

AT&TWe are not sure why anyone would exchange their bitcoins for fiat, but if one so chooses, he/she can use bitcoin to pay AT&T bills.

 

Swiss Exchange (SIX) to launch blockchain and stablecoin in 2019

swiss exchange sixStable coin fever is everywhere.  It is more rampant than blockchain itself.  Swiss Exchange is the latest to catch this fever, however, we are glad because it’s the Swiss.

 

CBS’s 60 minutes on bitcoin

60 minutes is probably one of the longest running shows that has not lost its credibility because of tenure. Now Anderson Cooper hosted 60 minutes show on Bitcoin titled “Bitcoin’s wild ride”.  Adoption, here we come in the disguise of sensational titles.

Bitconnect is coming back, but why?

bitconnect coming backAfter the spectacular fall from $435 to under 30 cents in the shortest span of any asset class’s history, Bitconnect site hints its resurrection. Our only question is – WHY?

 

Crypto dominates IMFs survey on preferred payment method

IMF21000 out of 37000 preferred cryptocurrency to other payment methods. Of course, this survey may have been swarmed by crypto evangelists but nevertheless that is quite an overwhelming outcome to IMFs survey

Amazon files patent for Proof of Work

Amazon logoIt may not be long before the USA will mean Unified Shoppers of Amazon.  It just feels like Amazon is in everything. Now Amazon made its omnipresence known with a patent for Proof of Work with US Patent office.

 

FDIC insurance comes to crypto

FDIC InsuranceCrypto is getting more and more legitimate by the day.  The latest in this journey is the FDIC insurance, thanks to SFOX and its partnership with M.Y. Safra Bank.

 

FinCEN issues guidance on virtual currencies

FINCENAddressing many questions from the businesses and individuals in the virtual currency space, FinCEN has issued guidance that many interpret to be restrictive, read it yourself.

Fidelity may offer cryptocurrency trading for pros

FidelityInvestment mammoth, Fidelity, is looking to open its doors for cryptocurrency trading to professionals.

Maryland passes bill to embrace blockchain

States are in a race to put out a ‘blockchain friendly’ face for the techies.  Maryland embraced blockchain by signing Senate Bill 136 that allows companies to record stock ledgers and accompanying information on blockchain.

London Stock Exchange could use blockchain

London-Stock-ExchangeFor a 300 year old financial institution to acknowledge blockchain is a big deal, it’s even sweeter deal when that institution is London Stock Exchange.

Washington gives legal status to blockchain

Records entered on Distributed Ledger Technology, including Blockchain, will now be legally binding in Washington. Bill 5638 is now passed into law.

Amazon Managed Blockchain service opens

Amazon logoA fully managed blockchain service is now available via Amazon Managed Blockchain services.

 

Philip Morris International pivots blockchain use

Philip Morris InternationalThe cigarette giant wants to use public blockchain to track tax stamps on the cigarette boxes to ensure that the taxes are actually paid.

 

Let us know if we have  missed any important updates in the comments.

Thank you for reading the article.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

Read more about the author here.

CryptoSpace

Why this bull run has no precedence? ONE key metric to rule them all

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bull run 2020

Everyone is singing the praises for the bulls’ arrival in the crypto space.

Some say that 2020 will mark the biggest bull run in cryptos’, albeit short, history.  

We are already in October so we doubt any fireworks will take place now since there is a lot of uncertainty about the US elections.

Add the uncertainty around the stimulus bills, unemployment trends, soon to be lifted forbearances and the list goes on.

2020 still has another 2.5 months to go but most of these uncertainties will take a while to show their true impact.

For instance, what will a Biden presidency mean for the economy and cryptos?  

How many people will be forced to sell their homes once the forbearance’s are lifted?

What happens if the next stimulus bill does not pass through?

When will the vaccine become available?

These are some of the unique situations that we have no precedence for. Do not let anyone convince you that we know what’s going to unfold, because no one does.

Yes, everyone has theories, like the ones we are presenting here, but that is all they are: theories.

The BIGGEST metric that crypto community is not considering

We are no economists nor can we run any fancy charts to impress a point on you.  

We are just good observers and have common sense to deduce a few things based on data.  

For instance, between 2007 and 2010 consumer spending dropped by an overall .2% and we know what that meant for the economy.

Personal consumption expenditure

In 2020, people have literally cut down on their spending.  Some of it is forced due to the restrictions imposed by external forces and most of it is self imposed.

I am sure the spending on marijuana, liquor and food have gone up but what about other spending?

2020 also saw a spike in the savings balances.  

Economy is not stimulated by people hoarding their money. People need to exchange value for the economy to thrive.

What happens to the spending behaviors when the true stats around evictions, lost jobs (that are not coming back) and small businesses that are shutting down permanently are out?

Our guess is that people are going to be weary of spending money in the short to medium term. If we were forced to pick a timeline – we would say about 12-16 months (assuming we get a vaccine in Q1 2021).

When is the next bull run? 

Based on what we have seen in 2007 through 2010 and observing the consumer spending habits in recent times, we think that Bitcoin (and cryptos) will not find their true peak until next halving.

We know this is not what you came to hear.  

If the bull run in your mind is hitting the 2017 highs then we do not think you have to wait until the next bull run.

If the bull run means a $100,000 bitcoin then we stand by our opinion on when that is going to be.

A case for bull run

In spite of what is going on in the street, following factors are acting as strong bull market signals for the crypto space. 

Hype: Crypto space (specifically Bitcoin) has been gathering a lot of steam in terms of brand awareness and mass penetration.  This is great for the long game.

Adoption: More than ever, private and public enterprises are becoming serious about bitcoin and underlying blockchain technology.  What is good for bitcoin is good for blockchain and vice-versa.  MicroStrategy investment, Paul Tudor Jones getting involved with bitcoin are some examples.

Tech explosion: Crypto space is home to some of the brilliant minds in the tech space. Add Big Techs interest in the crypto space and you have a perfect recipe for monumental shifts in crypto perception. Tech giants like Microsoft, Google, Twitter, Facebook are all getting involved with blockchain and cryptocurrencies in some shape or form.

Retail demand: More and more retail investors are looking for alternative investments and they are waiting on the sidelines to get involved with Bitcoin.  As soon as companies like Fidelity or other brands offer crypto investment through retirement plans – there would be a massive influx into this space.

DeFi: DeFi in its current state might be infested with shittty projects but as a concept and technological shift to turn the current banking system upside down – it holds great potential. Any demand to DeFi brings more demand to bitcoin, ethereum and blockchain in general.

Conclusion

The debate around when is the next bull run will hinge on how the market recovers from this pandemic. How soon will we get the vaccine and how many of the lost small businesses and jobs are we going to resurrect?

From a macro perspective, Bitcoin and few select cryptocurrencies will continue their upward trajectory so if you looked back to 2020 five years from now, you might think bitcoin was on sale.  

Question is: how many people have that kind of patience?

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Is Cryptocurrency driven by fundamentals or hype?

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Fundamentals or Hype

During the early 2000s India experienced a massive real estate bubble. With a lot of western companies opening their outsourcing centers in India, the land prices shot up 2x, 5x, 10x, and even 100x.

You read that right. 

Have you heard about 100x in Real Estate?

To be sure, the demand was exponentially growing in the major cities like Bangalore, Hyderabad, etc., which were quickly turning into back offices for the many western companies.

The hype in these cities was somewhat justified.

However, here is the kicker.  Many remote places which did not directly benefit from this influx of foreign direct investment started seeing their prices go up in similar fashion.

In a crazy case of trickle effect and super-hype created by the real estate agents, properties were just trading from one party to another for unbelievable markups and the prices constantly went up.

Today, that massive bubble is still intact minus the crazy multipliers.

The reason we like the comparison of what happened in Indian Real Estate market to the crypto is that a genuine need in a specific space has been exploited to translate that hype onto anything tagged with the name. 

In India that hype tag was ‘land’ and in crypto that hype tag could mean anything from ICOs to DeFi.

Ask any crypto enthusiast they will make you believe that crypto is all about fundamentals.  However, anyone who has spent even a few months in the space quickly realizes that crypto prices don’t follow fundamentals.  

This is one place where Crypto space shares its similarities with the stock market as well.

Stock market is completely distanced from the economy and it too acts irrationally, that is, when people are losing jobs and businesses are shutting down permanently, the stock market rallies higher and higher.

Similarly, crypto space, to its own detriment, is ignoring the projects that have amazing fundamentals while pumping other projects solely based on the hype.

Long term vs. Short term

Hype is short lived. Fundamentals are a long game.

That is why we emphasize that anyone interested in the crypto space does their own research in finding the projects that meet their fundamental criteria.

Once you know that a project has fundamentals (team that can execute, problem worth solving, solution that can solve, market demand, etc.,) then you just ignore the FOMO and FUD.

This will help you sleep better and use your spare time and energy in quality endeavors like taking care of yourself or spending time with family, etc.,

If you get on the hype train – it will be difficult to catch the right wave and this constant lookout for the next big thing is going to rob you of all the peace.

And, if you find yourself on the right side of the wave – you will be decimated and drowned.

DeFi defies all common sense

That is what happened with a lot of people who tried to ‘time’ the DeFi market.  

Don’t get us wrong. Many people made a ton of money (and good for them).  However, remember, crypto at this point of its evolution is a zero sum game.  That means, for everyone who made a million someone lost that million.

Unless you got on a project quite early keeping your risk level low or you have some insider information (not to mention this being illegal), you can generally not ‘time’ the market.

Many veteran traders have lost their shirts in chasing the market.

Conclusion: does this mean I should stay away from DeFi?

We cannot tell you that.  That is something you got to decide for yourself.

By market cap, Yearn Finance is considered one of the top DeFi projects. It lost over 67% in less than a month.   

Personally, if the top most project is still trying to find the ground while other projects are losing 99% of their value in a matter of a day, that means one thing:  the space needs time to mature.

We will continue to learn about DeFi. We will continue to invest what we can afford to lose when we find the right project that meets our fundamentals criteria.

That is our strategy at the moment. You have to find a strategy that suits you.

While crypto space is riding on the hype at the moment, we continue to believe in fundamentals.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Will India Ban Cryptocurrency Trading?

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Cryptocurrrency Ban India

India keeps playing with the emotions of the crypto community in India with constant back and forth of change in rules.

First it was a complete ban of crypto transactions. RBI forbids banks from serving any clients that deal in cryptocurrencies. Thanks to the Supreme court decision, RBI had to back off.

Now, there is a renewed effort to place a ban on crypto again.  

Is Crypto Ban a good thing for India’s financial future?

No, Cryptocurrency is here to stay according to many financial investors and billionaires. As nations prepare for a hyper-inflation cycle to sweep the world, Cryptocurrency can act as a hedge in addition to gold and silver.

If the government is concerned about illegal activities with cryptos then they can relax because most crimes happen in fiat cash transactions, not crypto which is traceable.

Crypto traders generally are not the ones that take part in illicit trades.  It is those who introduce illegal ICOs and OTC trades.

How about regulations?

Instead of banning crypto trades, how about bringing clear regulations to provide a framework for the crypto trading.

Such a framework should include stricter guidelines for ICOs and OTC trades.  

Crypto exchanges can relay the trading information directly to the tax authorities (instead of needing to be subpoenaed) so that there is transparency.

Will India Ban Cryptocurrency Trading?

That depends on whether India wants to be in the ranks of the United States, Switzerland, South Korea, etc., or if it wants to be counted among China, Russia and North Korea.

The United States, South Korea and Switzerland (along with other countries) are doing everything to stay ahead in the blockchain and crypto race.

Other countries we stated above are working to stomp on the innovation. 

A better question is: Can India ban cryptocurrency trading?  

The answer is NO.  

To ban cryptocurrency trading – India will have to shut down the internet.  

In the event of an actual law that bans Indians from participating in the cryptocurrency trading, the only people that will be impacted by those are the ‘honest’ citizens because the crooked ones will still find ways to trade using VPN or alias names.

For a country that wants to be at the forefront of technological revolution a ban would be a very backward decision.

We urge the Indian government to NOT punish the honest citizens by introducing a ban.  Rather, introduce a sensible legal framework for everyone to operate in.

This will bring more businesses to India and take India’s platforms to the world.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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