SEBI Boss Does Not View Bitcoin As A Potential Threat But Cannot Ignore It In Its Entirety Either
Indian regulators and tax authorities have been taking Bitcoin very seriously which has been made evident from the recent search operations conducted in the premises of Nine Bitcoin exchanges across the country and constant issue of warnings to investors for safeguarding them against the risks associated with the same.
According to a video on Economic Times, one of the India’s largest financial news source, Ajay Tyagi, the chairman of Securities Exchange Board of India (SEBI) feels that Bitcoin does not pose as a big enough threat for the Indian economy at present. He was quick to add thereafter that Bitcoin brings along certain characteristic features which simply cannot be ignored in its entirety.
He also adds that, Blockhain Technology (the underlying technology behind Bitcoin) is very useful and needs to be encouraged.
A warning message was issued recently by Reserve Bank of India, the country’s central bank propagating about the risk involved with crypto dealing. Finance Minister of India, Shri Arun Jaitley, also made it clear that, “At present, the Government of India does not recognises cryptocurrencies such as Bitcoin as legal tender”.
Just like the rest of the world, Indian users have also welcomed the crypto wave with open arms which have led to the opening of more than four bitcoin exchanges operating in full throttle in the Indian territory. The listing of Bitcoin Futures in Chicago-based exchange CBOE have caused the cryptocurrency to experience strong volatility. These futures also debuted on Chicago Mercantile Exchange (CME) thus imparting a somewhat legal tag to its functioning. In spite of these platforms trying to shun the extreme volatility of Bitcoins, it fell down by 10% to below $17000 figures on Tuesday. This was indeed the steepest fall experienced by the cryptocurrency since the introduction of Bitcoin futures on 10th December. The price of Bitcoin at the time of publishing this article was $16,611 with market experts terming the downfall as an expected and healthy correction.
Although countries around the globe are trying to bring upon bitcoin regulation, no central body has been established till date which looks after its functioning. The fact that bitcoin or other cryptos are not backed by any underlying asset has created a major cause of concern amongst regulators worldwide. The value of Bitcoin has become subject to massive speculation causing various market experts comparing the same to a bubble.
A December fund managers’ survey of BofA-ML had suggested that long bitcoin has adhered to its numero-uno position of being the most crowded trade for the second consecutive time this year. The cumulative market cap of all cryptocurrencies including the likes of bitcoin, ethereum and ripple account for a whopping $300 billion.
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