The authorities in India have taken a hard line against the adoption and spread of Bitcoin in their country. The recent development is that Indian banks are now restricting services from accounts suspected to be connected with Bitcoin trading.
This development is coming months after Indian Finance Minister Arun Jaitley publicly denounced the digital currency.
“Our current position on bitcoins is that we will not be using it for any payments and settlements…though the technology underlying cryptocurrencies will not end", he'd said at a conference in Mumbai.
He added that the government is working on ways to remove Bitcoin from the Indian community.
“Recommendations are being worked at. The government’s position is clear, we don’t recognize this as legal currency as of now.”
So, Indian banks are closing down or limiting activities on bank accounts associated with Bitcoin and cryptocurrency trading at the moment.
The State Bank of India (SB), Axis Bank, HDFC Bank, ICICI Bank and Yes Bank are guilty of this act according to reports. Are they feeling threatened?
As a result, operations of Bitcoin exchanges in India are being threatened. Koinex, a major exchange in the country recently had to suspend business for a while due to the situation. If the trend continues, it's only a matter of time before they run out of business and close up shop.
There are fears India's crackdown on Bitcoin could have a profound effect on the global crypto industry. This is in addition to reports of upcoming regulation of the coin in South Korea and other Asian countries.
It's not certain if these regulations play a part in the recent depreciation of Bitcoin though. Bitcoin in recent weeks has depreciated by a large percentage.
At the moment of writing this report, it is valued a little under $11,000, which begs the question: is this the beginning of the end for Bitcoin?