The investors and the cryptocurrency exchanges in India keep leading a fight to preserve the cryptocurrency in the country and maintain it alive and active. The national cryptocurrency market is affected by the new regulations and prohibitions imposed for the transactions with cryptocurrencies on the territory of India. The new restrictive measures were announced last month by the Reserve Bank of India.
According to sources cited by Reuters, the cryptocurrency investors residing in India maintain optimism when it comes to the perspective of the cryptocurrency market in the following months and after the banks and lenders started to abide the prohibition to process any transaction involving cryptocurrencies inside the country. The investors think the peer-to-peer negotiations could survive the new regulations and improve the decentralized market in India.
This wave of optimism allowed the cryptocurrency market in India to grow recently, despite the gloomy perspective created by the regulators. The total transaction volume on a daily basis reached 75 million US dollars, according to the cryptocurrency stock exchange from India called Coindelta. This growth brought back the national cryptocurrency market to the levels before the new regulatory measures and it is currently positioning to start a new round of negotiation in the eyes of the old investors.
In this sense, the price of Bitcoin also went back to its previous level and reached 9,270 dollars per coin or around 618,000 rupees. When compared with the price at the beginning of last month when the price of the world’s most popular cryptocurrency was around 350,000 rupees per coin, it is clear that the cryptocurrency market in India is recovering.
Shivam Thakral, the Executive Director of BuyUcoin, a cryptocurrency from India, pointed out that the cryptocurrency exchanges, the investors and analysts are taking advantage of the time span of three months before the application of the new regulatory measures starts to exchange rupees for cryptocurrencies, which is a phenomenon that also helped the digital currency market on its way to recovery. Thakral said: “There is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms. New investors are coming to our exchanges while existing ones are regaining interest after the drop because they’re getting good value and are making money as the prices of cryptocurrencies move higher. Unlike fiat currency, prices of virtual currencies are based on people’s beliefs and aspirations. The long-term vision for us and the people who are investing now is that cryptocurrencies are here to stay.”
Thakral also pointed out that the cryptocurrencies acquired during this the aforementioned time span could be exchanged for other cryptocurrencies or fiat money through private negotiations on social networks or instant messaging platforms such as Telegram, even after governmental prohibition kicks into action.
This way the cryptocurrency community in India believes the trading of cryptocurrencies is impossible to prohibit, unless the digital currencies are prohibited in the entire region, which is a possibility that is still not contemplated by the authorities.
In February this year the Minister of Finance of India said the cryptocurrencies should be banned as a method of payment, which was a decision that was made because of the fear that the cryptocurrencies could inspire and motivate illegal activities in the country. This is a radical stance of the Indian government against the cryptocurrencies and it dates back to several years ago, which slowed down the adoption of the blockchain technology in the entire region.
Due to this negative treatment of the cryptocurrencies, the cryptocurrency exchanges in the country challenged the order of the central Bank of India through local courts and even analysts think that removing the cryptocurrencies from the traditional financial systems could by a counterproductive decision, since the cryptocurrencies could be used for illegal activities if the authorities are not paying attention to them.