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The Central Bank's chatter continues to negatively affect the cryptocurrency market. The government and regulators in India continue to be negative about all kinds of cryptocurrencies. At the same time, several governments and regulators, and even the IMF, have called for a global system to regulate them. However, the lack of regulatory laws has led some to call for an outright ban. These calls for a ban on crypto and crypto mining continue to make the news.
The head of the Hungarian central bank called for a ban on cryptocurrency trading and mining.
However, Central Bank Governor Gyorgy Matolcsyi was not alone.
Bitcoin mining has been subjected to increased scrutiny, and some countries have imposed bans or are considering taking such measures.
Erik Thedeen, European Securities and Markets Authority Vice-Chairman, called for a ban on mining just last month.
At the end of the year, news that Indian regulators were searching cryptocurrency exchanges on suspicion of tax evasion sent a wake-up call of increased scrutiny. India's Prime Minister Narendra Modi also spoke about cryptocurrencies at Davos 2022, calling for cooperation with a common approach to address emerging issues related to cryptocurrencies.
Just yesterday, news surfaced online that crypto market representatives were meeting with Indian regulators to discuss crypto. Last Friday, crypto industry representatives reportedly met with politicians for the first time since Finance Minister Nirmala Sitharaman's announcement on tax policy in early February.
According to the report, representatives called on the government to reconsider its 30% tax on cryptocurrency.
For crypto exchange investors, Friday's meeting seems to have caused a negative reaction from regulators as RBI Deputy governor Shri T. Rabi Sankar called for a ban on cryptocurrencies yesterday. He highlighted key issues, including the use of cryptocurrencies to evade state control and the threat to India's banking and monetary system.
However, the market reacted weakly to this news.
A government-imposed ban now seems unlikely after news of a 30% tax on cryptocurrencies.
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