Higher Bitcoin Premiums, the Outcome of Banning Cryptocurrencies
Pursuant to some prohibitions imposed on financial activities in some countries in applying cryptocurrencies especially trades, mostly due to their legal incapacity to cover all intricacies included in these newly-applied currencies, these countries eventually confronted their stalk at least in some aspects of their economy.
[email protected]
Pursuant to some prohibitions imposed on financial activities in some countries in applying cryptocurrencies especially trades, mostly due to their legal incapacity to cover all intricacies included in these newly-applied currencies, these countries eventually confronted their stalk at least in some aspects of their economy.
The example of this ban is The Reserve Bank of India (RBI)’s limiting fiat-to-crypto exchanges in the banks under their supervision claiming that they can endanger consumer’s protection, market integrity and the like. Despite the attempts of G20 to regulate the cryptocurrencies, the government of India is still insisting on its stance.
Iran, too, has restricted crypto-activities thorough drafting a bill in this regard. Although it was criticized by the local crypto community. It is worth mentioning that the U.S. sanctions on the government of Iran have been effective in some platforms quitting activity in this country.
Those businesses which couldn’t afford this condition shifted back to their old job or shut them down.
All the above cases have made difficult purchasing crypto-assets, since the investors in these geographical regions were forced to turn into over-the-counter (OCT) market or peer-to-peer trades.
According to CCN Markets, which pointed to the increase of Bitcoin price in this month and raising the people’s tendency to use them in exchanges like Bitstamp and Coinbase, two countries of India and Iran which previously banned cryptocurrencies, now have trades with higher premiums ranging from 5 to 30 percent.
An instance of this imposed charge was on June 22, that according to TrustNodes report, the crypto-assets were traded at $11,700 while the actual value was $11,200 which denotes a premium of $500. It is currently 30 percent of the trade in Iran’s OTC market.
Coins International Journal
