Cryptocurrencies and the Indian FUD: Banks, RBI, Government, and Exchanges. FUD (Fear Uncertainty and Doubt) is the prime of all Dips and issues with Cryptocurrencies right now. Apart from the normal issues like making Mining more sustainable or greener, the bigger solution is Crypto Law. While China is banning Crypto, again and again, Iran banning Crypto Mining for 4 months, Elon Musk’s Infamous Pump and Dump. The need of the hour is Regulation. The Crypto Industry put together is in Trillions of Dollars and counting.
Banks and RBI
There are many Experts especially in India have a negative approach towards banks. I feel if there are no adequate or clear Regulations Banks have to follow what is on the table. While the 2017-2018 Circular of RBI has been uplifted by the Supreme court of India, the banks still are using it to warn customers. Due to the same banking issues, there isn’t adequate support for Exchanges in India. Thus, a normal investor fears to put in his hard-earned money.
Government and Exchanges
While the Government has taken a better stance in few months, the Crypto Stock Exchanges are facing tremendous troubles. In a recent article, I had explained how it’s getting difficult for the Exchanges as banks have stopped the support. For few days the news is that these exchanges are again trying to get support from the Supreme court of India. HDFC Bank in its recent report had spoken about Crypto being a FAD, to also noting a good regulation will make it better for all.
There have been instances in 2017-2018 many big Crypto Exchanges were shut down due to lack of clarity and similar bank behavior. Many investors faced the burn. Koinex and Zebpay were some of the top exchanges that closed down their operations. Although, Zebay reemerged again.
Bitcoin, Ethereum, and other major currencies are down due to weekend volatility and also due to Bitcoin options expiry. Polygon (MATIC) and Cardano (ADA) are performing better in the last 24 hours chart.