Cryptocurrencies are dealt another blow in one of their booming markets, this time in India where the central bank has slapped an immediate ban on banks from dealing with crypto investors and related firms. Meanwhile, South Korea announced plans to tax on gains from cryptocurrency transactions. More worry for crypto enthusiasts, as a Swiss study has found that Bitcoin remains overvalued and should fall sharply before year-end.
Here is a wrap up of the main news from the cryptocurrency and blockchain space over the last 24 hours.
India Central Bank Bans Banks From Serving Cryptocurrency Community
Indians can no longer avail the services of the country’s banks to purchase and sell cryptocurrencies after the central bank on Thursday slapped an immediate ban on banks providing services to investors in digital currencies. In its first bi-monthly monetary policy review, the Reserve Bank of India said that “In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs [virtual currencies].” The central bank asked banks already providing such services to cryptocurrency investors to stop them within a specified time, which, Deputy Governor Bibhu Prasad Kanungo said at a press conference, was three months.
South Korea To Announce Crypto Taxation Plan By June
South Korea has set June 2018 as cut-off time to come out with a taxation framework for cryptocurrencies, a month ahead of the July 2018, the deadline recommended by the G20 for own regulations for the crypto industry. The earlier idea was to levy tax under capital gains tax or other income tax. Though the country expects to announce the taxation framework now, it will start implementing it only in 2019 after the proposal is submitted at the National Assembly in August.
Swiss Study Says Bitcoin Is Overvalued; Sees Sharp Fall
Cryptocurrency major Bitcoin is overvalued and its market value should plunge before year-end, according to Swiss researchers. A study conducted by ETH Zurich showed that the values for the market cap indicate a current over-valuation of at least four times. In the paper titled “Are Bitcoin Bubbles Predictable?”, the researchers said, “Looking forward, our analysis identifies a substantial but not unprecedented overvaluation in the price of bitcoin, suggesting many months of volatile sideways bitcoin prices ahead.”
Ethereum Tops Bitcoin As Most Searched Cryptocurrency In India
Bitcoin may be the word’s most popular cryptocurrency, but in India, people are now more interested in Ethereum, which was the most searched cryptocurrency over the internet for the past five months in the country, according to a new report. The latest Mobile Majority report from the free internet provider Jana showed that 34.4 percent of online searches for cryptocurrency targeted Ethereum, while 29.9 percent of people searched for Bitcoin.
Australian Cryptocurrency Exchanges Brought Under Regulatory Framework
The Australian Government has brought all cryptocurrency exchanges in the country under its control. New anti-money laundering or AML guidelines came into force on Tuesday. The Australian Transactions and Reporting Analysis Centre (AUSTRAC) has directed Digital Currency Exchanges that it is mandatory for them to meet anti-money laundering and counter-terrorism financing (AML/CTF) obligations.
Data Stored On Blockchain Legally Valid In Arizona
Data stored and shared on a blockchain has gained legal validity in Arizona after Governor Doug Ducey signed a Bill to this effect. An amendment to the Arizona Revised Statutes, which recognizes data written and stored on systems using the blockchain technology, was introduced by Representative Jeff Weninger. Arizona already considers signatures recorded on a blockchain and smart contracts as legal documentation.
Sirin Labs Teams With Foxconn To Make First Blockchain Smartphone
Sirin Labs’ Finney, the world’s first blockchain-based smartphone, will be manufactured by FIH Mobile Ltd., a unit of electronics manufacturing giant Foxconn, Reuters reported. Finney, created by the Swiss-Israeli technology firm, is designed to securely store and use digital currencies in fee-less transactions.
As of 8.48 am ET on Thursday, Bitcoin was down 5.17 percent at $6,640 and Ethereum was lower by 2.4 percent at $373.71 on Coinbase.
by Jyotsna V