Recently in September, pricing of Bitcoin has dropped 48% in India, and the current trade value of cryptocurrency is now Rs.2,29,417/unit. The reason for this measurable drop is criticism coming from various departments for this illegitimate digital currency.
A big Chinese bitcoin exchange (BTC China) delivered a statement recently that it will restrict all cryptocurrency based trade functions by the end of September. CEO, Bobby Lee said that BTC China will soon stop approving new account registrations. China is responsible for approx. 23% of total Bitcoin trade happening all over the world, that’s why this sudden action by the Chinese authorities is being considered as the main reason for the 27% drop in the value of bitcoin. The Reserve Bank of India (RBI) has also started warning traders to stop bitcoin/cryptocurrency trading, though, it hasn’t taken any move like China till now.
Executive Director, Reserve Bank of India, Sudarshan Sen made a statement at the India Fintech Day conference last week, “As regards non-fiat cryptocurrencies, I think we are not comfortable.” The non-fiat currency here is referred to the unregulated currency i.e. cryptocurrency. This statement has been highly criticized by the Indian bitcoin trading platforms. They commented that digital currency is being opposed due to the modernity and innovation it may introduce. The Co-Founder and CEO of Bitxoxo, Hesham Rehman said, “Any history textbook will reveal how any disruptive and radical transformations were written off, in the beginning, only to become a part of our lives eventually. The criticism of Bitcoin is in line with the same inertia that resists change”.
Trading platforms have asked the government to implement a valid policy for cryptocurrency trading as well as regulation. The Co-Founder and COO of Zebpay, Sandeep Goenka said, “Government has set up a committee to prepare a framework and guidelines on to how to regulate bitcoins. Exchanges are waiting for the outcome of this committee’s report”.
Trading of Bitcoin has also affected considerably because of many investors and traders. The CEO, JP Morgan, Jamie Dimon stated, “It won’t end well. Someone is going to get killed”. He called the cryptocurrency a ‘fraud’ and promised that he would fire any employee in his company who would be found performing bitcoin trading. He said, “It’s against our rules and they (bitcoins) are stupid”.