Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- India and China still have a hide and seek a relationship with cryptos
- Recent political and regulatory developments in India show a ray of hope
- China toughens stand on cryptos as it imposes a ban on Security Token Offerings (STO)
Ray of Hope for Indian Cryptocurrency regulations
In a recent turn of events, the Indian Central Bank Governor surprised everyone by putting down his papers. Even though the Governor mentioned that he’s stepping down for personal reasons, it hasn’t stopped pundits from speculating as to why he’s leaving the post after serving the shortest term since 1992. The most common theory is that Patel was facing increased pressure from the government to employ a looser monetary policy, something he presumably was not prepared to do.
The reason why these turns of events are important for cryptos because India is by far one of the largest potential markets for crypto adoption and it was the RBI who had set up the current crypto-blockade in the first place. There is now a committee to select the next RBI Governor and this can actually be a good thing for crypto outlook in the country, depending on who they pick. Well, it can’t be worse anyway. In any case, the new Governor, whoever it may be will probably have their hands full with everything else going on anyway. As well as the finance ministry. So, unfortunately, this whole thing could get swept up in politics. However, this new progression might prove to be a wild card for crypto enthusiasts.
China steps up its rhetoric against digital assets
Meanwhile, it seems that China, the largest potential market for crypto adoption, has stepped up their rhetoric against digital assets. The People’s Bank of China is showing how on top of things they are by clarifying that STO’s (a term that has only recently gained popularity) will not be tolerated. Though there are no Chinese laws against Security Token Offerings, it seems the punishment is now banishment. The above two updates may not have much effect on short-term prices but the second one is proving to be a popular talking point on crypto social media as all leading coins continue testing the lows and searching for the floor.