September 30, 2021
China’s blanket ban on crypto mining and transactions resulted in a 9.26 per cent fall in the global cryptocurrency market capitalisation on Sunday and a 29.8 per cent decrease in trading volume, according to Live Mint..
The Indian crypto trading ecosystem, too, witnessed a slowdown in trading volume by about 30 per cent. In the Indian digital currency market, however, a number of restrictions have been imposed from time to time, but as of now, there is nothing to worry since the crypto currencies are decentralised, and insulated from the diktats of central banks.
Sharan Nair, CBO, CoinSwitch Kuber, sees this as a short-term trend. “In my experience in the industry over the years, it always bounces back. Many older investors who have been invested in the crypto market for over a year were looking for better deals on cryptos as the prices dived during the weekend. A few of the newer ones who have recently joined, say about four to five months back, were panicking a bit and were trying to sell, but overall we still had more buying orders,”
In March 2021, the Ministry of Corporate Affairs mandated the companies to disclose the investments and trading in cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, among others. The disclosure was, seemingly, intended to curb illegal activities that take place through digital currencies.
So, although bans on cryptocurrencies by Chinese authorities or similar actions do not put any stumbling blocks for digital currency traders in India, they — on the other hand — give good buying opportunities to investors.
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