India was initially one of the first nations to embrace the true enormity of Bitcoin. With the country open to the opportunities of Bitcoin many in India believed that Bitcoin would soon take its first steps and bring the innovation and profit which it has to many other countries. However recently it seems as if the country is starting to crack down on Bitcoin transactions with a number of businesses reporting being shut down or questioned by authorities over their actions. Just today it was also announced that BTCXIndia, one of the biggest trading platforms originating and based in India has also been forced to close down amid concerns about the regulation of Bitcoin.
The statement below was made as a press release on Reddit. It highlighted how the banks of India are too turning their business away from Bitcoin with the risk of being fined and embroiled in legal disputes causing a stir among the banks of india.
We regret to inform you that BTCXIndia is closing down it’s bitcoin trading platform as of 20th of May 2015.
We have today been informed by our bank that they will no longer serve bitcoin businesses. We have investigated the possibility to operate through other banks, but it seems this is a general policy in India as of today.
Without a bank account, we can no longer operate as a business and we are thus forced to close operations.
BTCXIndia launched in May 2014 with the aim to offer a regulatory compliant trading platform, and have since served customers without any issues. We have been in close contact with banks and authorities to ensure we are as legally compliant as possible in a new industry, and today’s news comes as a big shock to us all.
the full statement can be read via reddit here
This isnt the first time crypto has come into contact with the authorities in India as UnoCoin oner of indias most used bitcoin wallets also came under scrutiny as it was met with government force. In an recent incident the coin came into contact with police officers who quizzed staff on the coin. However it seems that the lack of regulation and the confusion and miscommunication currently occurring throughout the country may be to blame for the recent spate of attacks on Crypto and its infrastructure.
To conclude with the number of countries banning or outright regulating the use of Bitcoin, it is forecasted that the value of Bitcoin itself will be hurt in the long term. With countries stemming the Bitcoin, organisations can no longer freely develop infrastructure for Bitcoin in a variety of countries such as China and Russia which have also banned the use of Bitcoin. Other Asian countries such as Bangladesh have also shown their views on Bitcoin by placing those who use the cryptocurrency in jail. With this negative press furthwer smearing Bitcoins name it wont be a easy future for Bitcoin enthusiasts hoping to use crypto on a daily basis.