Crypto Bans and Regulations
A crypto ban is a government regulation that prevents regulated entities from dealing in digital assets. In India, the Reserve Bank of India has banned entities from providing services to anyone dealing in virtual currencies. Although the ban is not fully enforced yet, there is a good chance it will be upheld by the Supreme Court sometime in 2020.
India’s Supreme Court lifts TikTok’s crypto ban
The Indian Supreme Court has vacated the interim order banning TikTok’s crypto-based video-sharing app. The court cited the importance of intermediaries under Section 79 of the Information Technology Act (IT Act), and the fact that Article 19(1) of the Constitution of India protects freedom of speech online.
The Madras High Court had banned the TikTok app on grounds that it promotes pornography and exposes underage children to sexual predators. A public interest litigation was filed against TikTok. Apple and Google had been ordered to remove the app from their stores. But Bytedance, which operates the app, challenged the state court ban in the Indian Supreme Court. It said that it had faith in the judicial system in India.
China’s central bank banned all cryptocurrency transactions
The People’s Bank of China (PBOC) has banned all cryptocurrency transactions on its website. The ban comes amid worries over speculative activities involving the virtual currency. The PBOC says it is clamping down to protect people’s assets and maintain economic, financial, and social order. As a result, the price of bitcoin has dropped significantly. At the time of writing, the cryptocurrency was trading at $42,464 – down 5.5% from its previous high of $42,222.
While cryptocurrency promoters tout its anonymity and flexibility, regulators are wary of its risks of eroding government control or covering up criminal activity. China has been one of the largest markets for cryptocurrencies, and the ban has affected their value. Many companies had been anticipating the ban, and their share prices and values dropped initially. However, since the ban, the prices and value of virtual currencies have recovered and the market is expected to continue to grow.
New York state is hostile to crypto mining
Crypto mining has attracted interest in New York for years, but the state is now hostile to the practice. A recent bill proposes banning proof-of-work mining, which could force crypto miners to leave the state. This would be a loss for the state’s economy, as the mining facilities employ a high number of construction workers, electricians, and engineers. It would also result in the loss of tax dollars. Despite the threats of the state, cryptocurrency mining companies are still choosing New York as their home.
The bill has yet to be signed by Democratic Governor Kathy Hochul, but it’s already in the Senate. If it passes, it would put a two-year moratorium on cryptocurrency mining operations. The bill targets proof-of-work mining, a technique that requires large amounts of electricity and sophisticated gear. If passed, mining companies in New York would be forced to move to other states, where crypto mining is allowed.
