Fear, Uncertainty, and Doubt, always seems to find a way to rear it’s ugly head in the marketplaces on a regular week to week basis for whatever reason it may be. This past week we’ve witnessed disheartening news from the Tether and Bitfinex subpoenas which were later realized, were situations that have been happening since last December. We’ve seen Tether let go of its auditors and this seems like a probable concern in regards to the price of Bitcoin.
We’ve also seen Facebook banning cryptocurrency ads in regards ICO’s and other investment placements on their platform, and probably with good reason, it is in the best interest of Facebook to protect their user base and to keep their user -experience as clean as possible, the cleaner the experience, the more times they return. Facebook has also been facing more challenges in how they present content, promote content and minimize fake news so this sort of “ban” makes sense.
We then come to general regulation anxiety, anxiety over this might have started at the dawn of cryptocurrency, a time when cryptocurrencies flew under most people’s radars. This is one that keeps persisting, the most significant concerns that we continue to see are in regards to either taxation of cryptocurrencies and then steep regulation.
Steep regulation is classified as the events which took place last year in China, which, also, carried with it great uncertainty, but markets recovered and other markets like South Korea, Latin America, and North America are starting to take more interests in cryptocurrency and are taking over.
Recently we witnessed the uncertainties and the backlash from the people in South Korea, which led to stability and regulations in regards to anti-money laundering, cryptocurrency exchange cyber safety and age restrictions on trading.
While that died down, rumors started to surface of the crazy events that were happening in India; banks were stopping transactions to cryptocurrency exchanges, then we heard just recently that the government of India was planning to shut cryptocurrency down in the country. This was found to be false.
The India Ban that wasn’t
The trouble started when people that thought the finance minister’s comments on cryptocurrencies meant that the government would simply put an end to the industry abruptly.
The finance minister noted:
“The Government does not consider cryptocurrencies as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”
Now, one would quickly conclude that the Indian government was going to put an end to the cryptocurrency industry if they believed the rumor that all cryptocurrencies are linked to financing illegal activities. Yet, most known that cryptocurrencies are used for a wide variety of reasons and that money laundering can happen in fiat and crypto. Most also are aware that tax notices have been sent out by the government to crypto traders, a move that somewhat legitimizes the activity. After all, if a government considered an activity to be bad, they wouldn’t tax it, take prohibition in the U.S, it was illegal, the government did not tax it, they deemed it to be illegal and spent most of their time trying to stop the activity of alcohol distribution. Take illicit drugs, the government doesn’t tax it, they spend their energy trying to close operations down.
Always take a step back and look at the situation before acting rashly and losing your investments.