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India’s Central Bank Clears the Air on Cryptocurrencies not Being Outlawed

India’s central bank, the Reserve Bank of India (RBI), stated that cryptocurrencies are not banned, including Ethereum and Bitcoin in the nation as it only highlighted the risks linked to crypto trading to regulated entities like banks.

The RBI raised these sentiments as a response to a petition filed by the Internet and Mobile Association of India (IAMAI) that wanted a reconsideration made with regard to a 2018 circular which directed regulated entities to avoid cryptocurrencies.

RBI highlights risks linked to cryptocurrencies

The central bank stressed that some of the dangers associated with cryptocurrencies include money laundering and terrorist financing. These are remarks shared after the IAMAI’s members challenged the RBI’s stance on banning cryptocurrencies at the nation’s Supreme Court.

In a hearing held earlier this month, the IAMAI debated that without a law in place prohibiting crypto trading, it remained a legal business activity though RBI had hindered it by blocking access to banking channels.

The affidavit noted, “Firstly, the RBI has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs… The RBI has been able to ringfence the entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks.”

RBI responded to IAMAI’s objections saying, “Any possible avenues which facilitate anonymous cross-border fund transfer have to be acted upon swiftly and stringently dealt with. It is an admitted fact that VCs have been used to purchase illegal and illicit goods ranging from guns and ammunition to drugs.”

The central bank insisted that it was not against any technological innovation as it encouraged the adoption and development of distributed ledger technology.

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OKEx Delves Deeper Into Indian Crypto Space with CoinDCX Partnership

OKEx, a leading Malta-based crypto exchange, has shown its resilience to penetrate the Indian crypto market and now plans to launch leveraged future products in partnership with CoinDCX, the nation’s biggest crypto trading platform.

New derivative to be established

Through the strategic collaboration, CoinDCX will be able to launch a new derivative product called DCXfutures, and this will be instrumental in enabling OKEx set foot in the Indian crypto space.

As a result, both retail and institutional Indian investors will be in a position to trade futures, and OKEx will offer a 15x leverage on various cryptocurrencies, such as Bitcoin, Litecoin, Ripple, Bitcoin Cash, and Ether. Additionally, perpetual futures contracts will be availed in both Ether and Bitcoin.

OKEx is being touted to prompt more liquidity based on its notable capacity of providing world-class futures.

Head of OKEx India, Zaz Zou, noted, “India is primed to be the driving force behind the mass adoption of cryptocurrencies, which is why we are keen on adding more equitable currencies to the ecosystem.”

He added, “We believe having a variety of options to transact digital currencies will bolster the growth of the economy in India as it positively impacts both crowdfunding and institutional funding.”

During DCXfutures launch, maker fees will be at 0.2%, whereas the service will be at the beginning availed to select participants on an invitation-only criterion. Nevertheless, the general public is expected to utilize DCXfutures from the second quarter of 2020 using a single wallet.

India eyes 5 trillion dollar club status

Sumt Gupta, CEO and co-founder of CoinDCX, noted that India holds considerable capabilities in the crypto sector. Once fully exploited, this nation could become a force to reckon with globally.

He acknowledged, “With the huge potential of cryptocurrency markets to accelerate economic growth and wealth generation in India, we believe that this collaboration takes India one step closer to joining the ‘5 trillion dollar club’ as one of the fastest-growing economies in the world, allowing us to avail of new opportunities and take on new challenges.”

India has been making essential steps in the blockchain arena. For instance, according to LinkedIn’s 2020 Emerging Jobs Report, sought after positions such as blockchain developers, have skyrocketed to unprecedented levels in this country.

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India’s Supreme Court Turned the Tables on Crypto Ban in Landmark Ruling

In a momentous ruling, India’s Supreme Court has lifted the ban made by the Reserve Bank of India (RBI), the nation’s central bank, on banks and other regulated entities dealing with cryptocurrencies. As reported on March 4, the court noted that preventing regulated entities from offering banking services to crypto trading stakeholders did not hold any water.

RBI’s biased decision

In April 2018, RBI made a controversial decision to impose a blanket ban on regulated financial institutions from dealing with crypto businesses. Three months later, crypto exchanges found themselves on the receiving end as banks had to close their accounts and this thwarted crypto adoption in India.

Nevertheless, relevant stakeholders in the crypto sector did not throw in the towel as they were ready for a legal battle, as evidenced by both industry and public-led petitions. In January 2020, a breakthrough seemed imminent as the Internet & Mobile Association of India (IAMAI) filed an appeal before the Supreme Court challenging the RBI’s crypto ban decision.

Interestingly, RBI had responded by stating that cryptocurrencies, such as Bitcoin and Ethereum, had not been banned as its resolution was pegged on highlighting the risks linked to crypto trading to regulated entities like banks.

The court ascertained, “When the consistent stand of RBI is that they have not banned VCs and when the government of India is unable to take a call despite several committees coming up with several proposals including two draft bills, both of which advocated exactly opposite positions, it is not possible for us to hold that the impugned measure is proportionate.”

The Supreme Court judges handling the case noted that the RBI’s decision was not appropriate.

India’s appetite for blockchain

India is continuously positioning itself as one of the preferred blockchain hubs globally. For instance, according to LinkedIn’s 2020 Emerging Jobs Report, sought after positions such as blockchain developers, have skyrocketed to unprecedented levels in India.

It is also speculated that Kerala, a southwestern Indian state, will churn out 20,000 blockchain experts by 2021. With crypto trading getting the green light from the Supreme Court, crypto adoption in India is now guaranteed without fear of contradiction.

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Binance Partners with Brave to Enable Seamless Crypto Trading on Web Browser

Binance crypto exchange partnered with blockchain-based internet browser Brave to enable crypto adoption into browsers. Such a partnership aims to let Brave browser users enjoy convenient and seamless cryptocurrency trading through Binance.

Brave is an open-source web browser open-source based on Chromium. It blocks malware and website trackers and uses blockchain to anonymously keep track of user activities. The company has been paying around with cryptos for a while. The firm has its own crypto asset, the Basic Attention Token (BAT).

Efforts to let users access crypto

Brave has integrated the Binance widget in its new tab page to give its users direct access to Binance.US for US-based users and Binance.com sites. Users will use the widget to receive, buy and trade crypto assets, get deposit addresses, and view their balance directly on the new tab page. This aims to enable users to trade cryptocurrencies like Bitcoin, Ripple, Ethereum, Litecoin, and several other cryptos supported by Binance.

Users would not need to worry about the safety of their assets since the widget is not merely a loaded iframe. Instead, it is a native widget Binance’s API built into the Brave browser and does not load any data from Binance’s server, implying that users’ privacy is protected.

Brendan Eich, Co-founder and CEO of Brave revealed that crypto trading can be a daunting task for users who are not familiar with such digital assets. He said that the move to integrate Binance into the Brave browser is set to make the process simple and seamless. He stated that by bringing a leading crypto exchange like Binance directly into the browser, Brave is taking crypto trading mainstream and enabling users to carry out transactions with ease.

Binance believes that such integration will enable traders to manage their cryptocurrencies in a more frictionless and safer way. Binance CEO, Changpeng Zhao said, “The Binance widget on Brave’s privacy-oriented browser instills a safer way to buy and sell crypto and also reduces user friction to onboard, trade, and interact with the Binance ecosystem. We are looking forward to our long-term partnership with Brave to make it even easier to interact with crypto and encourage more utility in the near future.”

Binance widget will be enabled by default, though users can choose to turn it off and hide it directly from the new tab page or by managing their settings if they want.

Binance’s commitment to build a super exchange ecosystem and add options

In December 2019, Binance CEO Changpeng Zhao made new announcements concerning the company’s new partnerships and new products that would be rolling out. The company has been committed to adding lots of new functions like airdrops and staking and the support for forks. Changpeng revealed that of late, the crypto exchange has plans to support payments and other features.

The company’s intent to develop super exchange ecosystem is aimed to enable users to have access to varieties of value-added services on mobile applications. Such a move is an appropriate one as the company wants to meet the latest consumers’ needs. The current world is in the mobile internet stage, whereby the majority of people use mobile apps to access information and products. It is clear that Binance’s move to partner with Brave is based on its effort to increase the liquidity and access of cryptocurrencies globally.

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CoinMarketCap Introduces Algorithmically Ranked Crypto Trading Pairs to Eradicate Volume Inflation

CoinMarketCap, a leading crypto data tracker, has gone a notch higher by presenting a new ranking system based on an innovative algorithm powered by machine learning. According to the company’s blog post, this new approach will enable users to make more profound trading decisions when it comes to market pairs.

The transition from a single metric system

The new approach presented by CoinMarketCap seeks to revamp its current single metric ranking network to a combined one that will handle at least 22,000 market pairs covering more than 5,500 cryptocurrencies.

The crypto data site intends to eliminate the volume inflation problem that has been ruffling feathers in the crypto space because exchanges have been accused of increasing trading volumes to show more legitimacy.

The instruments to be used will be algorithmically scored based on elements like liquidity, volume, and a user base estimate for different crypto exchanges. These factors are expected to give a more comprehensive picture of every market pair for better decision-making.

CoinMarketCap is also introducing a confidence indicator to show its trust level in the trading volumes given by various exchanges for a given pair. Presently, it offers perpetual swaps markets in derivatives.

Availing trustworthy trading markets

CoinMarketCap seeks to offer a more credible and cost-effective platform by revamping its current market pairs ranking system.

According to the announcement, “If you want to buy Bitcoin with euros (i.e., BTC/ EUR market pair), how do you determine which exchange is offering you the best price while showing you legitimate trading volumes?”

The new ranking system is seen as a perfect answer, and it is to be set at default for all cryptocurrency trading pairs.

This development comes nearly two months after CoinMarketCap was acquired by Binance, a reputable crypto exchange, for an undisclosed fee, but it was previously reported to be $400 million.

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Crypto Trading in India Soared by 400% During COVID-19 Lockdown

With the ongoing COVID-19 pandemic, India’s cryptocurrency trading industry has seen an increase of 400 percent over the last few months.

Crypto investors were initially worried about a potential ban of crypto in India. Rumors of a law set to terminate cryptocurrency use in India have been circulating for quite some time. However, as The Hindu reports, cryptocurrency trading is on the rise in India, and there are new players and even retail investors that have recently entered the crypto trading market within the last four months.

Former head of Blockchain and Cryptocurrency Committee of the Internet and Mobile Association of India (IAMAI) Ajeet Khurana speaks up regarding the new increase in crypto trading. He thinks that much of the newfound interest in crypto is due to the mandatory COVID-19 lockdown:

“Along with the lifting of the restrictions on trading, the lockdown has also pushed people to stay at home and many people are spending more time on their desktops and many of them are trading more. Trading volumes are quite robust. Daily crypto trading volume in India maybe USD 10 – USD 30 million.”

He goes on to add that the crypto trading numbers are significant enough for it to generate attention from crypto regulators, who should work on fixing fundamental issues revolving around crypto trading in India, such as classification and taxation. Khurana thinks that the trading volume of cryptocurrency is significant enough for the industry to become a potential commercial activity and valid asset class.

Other key figures of the crypto industry in India have also spoken up. CEO and founder of WazirX – an Indian crypto trading platform – Nischal Shetty said that his crypto company had seen a four-time increase in sign-ups. Much like his counterpart Khurana, he attributes his newfound crypto clientele to the COVID-19 lockdown:

“The lockdown has been a major factor. People have more time to understand and learn new things. Also, a lot of people are looking for new avenues of making money online, as they don’t have a job right now or their jobs are offline and they can’t go to work.”

Another key factor contributing to crypto trade increasing in popularity in India is the Supreme Court’s (SC) decision not to ban cryptocurrency earlier in 2020. However, much work in the Indian crypto industry is to be desired. While the SC has allowed virtual currencies to be used by institutional banks, crypto regulators in India still need to figure out a way to regulate crypto trade.

CEO of WazirX Shetty says that the IAMAI is working on a draft of a code of conduct for cryptocurrencies.

Paxful Research Reveals How Nigerians Are Fighting Devaluation of Native Currency Naira with Bitcoin

The current pandemic has led to a devaluation of Nigeria’s native currency Naira and affected how cryptocurrency trades are conducted in the country.

Devaluation of Naira

With the devaluation of Naira (NGN) from 2018 to now, the exchange rate of Naira inflated from 306 NGN to 380 NGN for one USD, a considerable devaluation that has gotten Nigerian business owners worrying about the repercussions and impacts on their companies. The local currency’s devaluation means that if one had 1,000 NGN in their savings, for example, the monetary sum would have shrunk to 750 USD with the inflation of Naira – this translates to a staggering 25% decrease for Nigerians.

Speaking to local Nigerian traders and business owners, peer-to-peer Bitcoin market platform Paxful discussed probable solutions and brainstormed how Nigerians could combat the devaluation of Naira during the ongoing pandemic.

Cryptocurrency and Bitcoin hedging

IT consultant Ebuka provided a different perspective to the devaluation of NGN, saying that he had managed to profit a little from the Nigerian currency drop by exchanging his USD funds into Naira.

Trading with foreign currencies like Ebuka and converting USD to NGN is not always an alternative for Nigerian locals, however, as many only earn income in Naira and do not have funds in foreign currencies. With the devaluation of NGN, it has become increasingly difficult for Nigerians to exchange Naira for other currencies due to the inflation in the currency’s price. Cryptocurrency trading is therefore a great hedge solution for Nigerians in light of the financial crisis brought upon by COVID-19.

Cross-border trading must be done in a tactful manner, however, and “the focus must be to make small profits first, and not expect to get rich fast overnight,” revealed full-time trader Happy in a discussion with Paxful. She added:

“If you buy BTC at a high rate, be mindful when you hold for too long because any rise in the price of Naira may lead to a fall in BTC price. It’s challenging to monitor the prices of both BTC and Naira, but you’ve got to stay alert.”

Despite the devaluation of the foreign currency affecting international trading, another plausible alternative for Nigerians proposed by Ebuka may be income earned through arbitrage. Arbitrage is a practice used by investors where securities and assets are purchased and sold in order to profit from a difference in the asset’s price across various markets.

In order to help Nigerians and the crypto community worldwide achieve financial freedom, Paxful has also come up with an Affiliate Program, which enables an investor to earn Bitcoin (BTC) and 50% of the escrow fee every time they invite “an affiliate” friend to buy Bitcoin on the trading platform.

India Considers Banning Crypto Trading Which Could Impact 1.7 Million Dependent Local Traders

The federal cabinet in India is expected to discuss a new bill that will ban cryptocurrency trading soon. This will place India among other Asian economies that have decided to regulate the fledgling crypto market, according to Bloomberg.

More emphasis on blockchain technology

Once discussed, the bill will be sent to the Indian parliament. Nevertheless, the Indian federal government is keeping a watchful eye on blockchain technology as it intends to encourage its application in different sectors.

According to LinkedIn’s 2020 Emerging Jobs Report, sought after positions like blockchain developers have skyrocketed to unprecedented levels in India. Therefore, it seems the government is keen on maintaining this trend with its think tank dubbed Niti Aayog, even if it outlaws cryptocurrency trading.

Crypto’s ups and downs in India

Crypto trading has had its ups and downs in India because, despite the government’s efforts to ban it in the past, it has been favored by numerous overturns by the supreme court.

For instance, in March 2020, a sigh of relief was witnessed after the Supreme Court turned the tables on a crypto ban imposed by the Reserve Bank of India (RBI), the nation’s central bank, in a landmark ruling. It noted that preventing regulated entities from offering banking services to crypto trading stakeholders was unconstitutional. Following this ruling, the RBI changed tune and confirmed that no banking ban existed in the cryptocurrency sector.

Nevertheless, it looks like things are going back to the drawing board because the new bill aims to stamp the Indian administration’s authority in prohibiting the trading of cryptocurrencies.

1.7 million Indians might be affected

The renewed efforts to tame crypto trading could affect at least 1.7 million Indians indulging in the digital assets arena. The crypto space is a force to reckon with on India soil because crypto trading soared by 400% despite the coronavirus (COVID-19) lockdown.

The planned outlaw has started to elicit reactions. For instance, a New Delhi-based lawyer Sanjay Khan noted:

“Instead of a ban, India needs a regulatory framework to protect uninformed retail consumers to ensure adequate oversight of the government and the RBI over cryptocurrency businesses.”

Time will tell whether the new bill will ever see the light of day.

PayPal’s Crypto Trading Services Officially Launch in the United States, Driving Bitcoin’s Price Past 16K

PayPal’s crypto services are officially available for use. US PayPal users will now be available to buy, sell, and hold cryptocurrency assets securely through the payments network.

The crypto services will be available in all states, except for Hawaii. The financial service provider will feature Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, which can all be stored on the application’s digital wallet. The addition of other cryptocurrencies is still to be announced.

Due to high demand, PayPal has also decided to up its weekly cryptocurrency purchase limit to $20K, so that users can now trade up to that amount. The waitlist to leverage PayPal’s US crypto services has also been waived, as of now.

PayPal’s “Cryptocurrency Hub” platform was much anticipated and expected, as many institutional investors worldwide have increasingly added crypto assets like Bitcoin to their agenda. PayPal’s payment rival, Square, figures among the corporate giants who hold BTC in its treasury reserves, with a purchase of 4709 Bitcoins. With that announcement, many have indicated that it was only a matter of time before PayPal followed suit.

Currently, PayPal is working to enable crypto payments across 26 million merchants worldwide. If all goes well, a new form of payment service on PayPal may be available in 2021.

Digital currency adoption is coming

PayPal’s CEO Dan Schulman previously disclosed that the launch of crypto services on the payments platform is designed to bolster the adoption and integration of digital currencies, as the technological wave and shift to virtual currencies is undoubtedly coming. It has also been implied that in the near future, when central bank digital currencies (CBDC) come into play, PayPal will be among those that will facilitate the use of CBDCs on its payments network, as the financial firm has been in talks with central banks.

Introducing a cryptocurrency trading platform may be a small step forward, but whether or not it is a bold enough move to attract investors to leverage the services remains a question. Currently, the terms and conditions of PayPal indicate:

“You currently are NOT able to send Crypto Assets to family or friends, use Crypto Assets to pay for goods or services, or withdraw Crypto Assets from your Cryptocurrencies Hub to an external cryptocurrency wallet.”

What may be interesting for PayPal users would be if cryptocurrencies could be used as a means of payment, since transacting with virtual currencies seem to be an eventuality.

Bitcoin spikes and surges past $16K

Following the news of the “Cryptocurrency Hub” launch on PayPal, Bitcoin’s price rallied higher, pushing past the $16K level. Currently, it is trading at $16,399.30 on CoinMarketCap, as market bulls have responded optimistically to PayPal’s crypto asset integration.

The mainstream cryptocurrency has been performing bullishly this month, although it has been consolidating below $16K for awhile. Bitcoin’s rally has been exciting for investors, as it even managed to push past the $16K mark momentarily. The last time Bitcoin’s price surged past that range was in January 2018.

In response to the news, Bitcoin bulls have tweeted their enthusiasm. Gemini co-founder Cameron Winklevoss said, “What I like most about hitting $16K #bitcoin is that it’s been a steady climb. No heroics, just grinding day in and day out.”

Bitcoin Is in a Normal Consolidation Market, says Bollinger Bands Inventor

Bitcoin (BTC) bulls have continuously tried to reach the $20,000 price, falling just shy of what could have been a new all-time high (ATH) price by getting to $19,832 at the end of November. BTC price has however fallen back to around the $18K level at press time, and a renowned investor seems to have predicted this price retracement.

Veteran trader and the inventor of the famous Bollinger Bands (BB) indicator John Bollinger had taken to Twitter to suggest that this price action depicts a normal consolidation market. He tweeted:

“We reached the current level for BTC/USD on November 18th and have consolidated to the point where the middle band has caught up with the price. Normal market action so far. Let’s see if support can hold here.”

Bitcoin has been in a consolidation state because its price rally came to a halt on Dec. 1 after failing to breach the ATH price of $20,000. As a result, it has been moving sideways, illustrating a sharp correction.

After the Bitcoin price hit a record-breaking level of $19,832 not seen in nearly three years, Bollinger warned of an imminent retracement. He cautioned:

“Time to pay attention to BTC/USD. That is a classic top setup. No confirmation yet, and the setup could easily be overrun, but wise traders should wash their glasses.”

The crypto market was on a rollercoaster ride in the month of November, based on the record highs witnessed and its following descent to the $16K level. In November, the number of active BTC addresses either sending or receiving BTC hit the third-highest level at nearly 19.6 million, making the on-chain transaction volume rise by 47%.

Furthermore, the monthly trading volumes across crypto exchanges surged to an all-time high of $348 billion in November, representing a 125 percent increase from $154 billion recorded in October.

Time will tell what Bitcoin has in store for the crypto market because it stole the show in November by being a stone throw away from the ATH price of $20,000.