Cryptotrading still alive in India despite RBI efforts

RBI bans banks from working with crypto exchanges, but Unocoin and Zebpay continue trading, already calling people to sign the petition against new regulations
08 April 2018   867

Reserve Bank of India recently caused an uproar in Indian cryptotrading community with their ban for all RBI-regulated banks to work with any cryptocurrency operators.

RBI released a statement, with Chief General Manager Jose Kattoora as a spokesperson, that the banks should stop any partnership or affiliation with any business or person(s) that are dealing with cryptocurrencies. The banks have three month to confirm with the new regulation, or face charges and fines.

The goal for all this hassle is, apparently, to curb over the counter cryptocurrency trading and stop money laundering. Which, if one stops to think about it, is quite strange considering the fact that instead of preventing, it will magnify the problem. The legal exchanges always have an extensive Know-Your-Client policy to prevent exactly this shady stuff from happening, and they are now getting roadblocked for all the effort.

Despite the media craze surrounding this ban, it doesn't entail a ban on cryptocurrency trading as a whole. RBI only made banks stop their partnership with exchanges, which means that while there may be problems with or outright no way of converting fiat to crypto and back, trading itself wouldn't pose any problem to the users.

Still, one of the largest Indian cryptocurrency exchanges – Unocoin, has released a statement, that the clients' funds, be they fiat or crypto, are safe on the platform and the users can still trade and utilize their money as they see fit, even withdraw them to fiat. At least for now.

Mirroring the competitor, Zebpay also announced that there shouldn;t be any problems with trading itself, but in this case they've preferred to cover ther back with a remark of possible problems with deposits and withdrawals. Also of note is a passage that they can't guarantee any returns in such cases.

Already there is a huge movement underway to refute these new regulations. Several prominent players from blockchain community and exchanges are reaching to the Indian government to withdraw the ban. Also, common folk can sign a petition supporting the same agenda.

HKEX to Hesitate with Bitmain IPO Application Approval

Watchdog is very careful due to unfavorable situation in the market
17 December 2018   72

The Hong Kong Stock Exchange (HKEX) is in no hurry to approve applications for initial public offering (IPO) from leading Chinese cryptocurrency companies due to an unfavorable situation in the market, CoinDesk reports.

For the year, Canaan Creative, Ebang and Bitmain, the mining equipment manufacturers, submitted applications for IPO.

The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them. 

Anonimous Source of Coindesk

IPO applications must be approved by HKEX and the Securities and Futures Commission (SFC). After they are allowed to be considered at the hearings on listing, which, in particular, determines the nominal stock price and the volume of their offer. If the applicant does not appear at the hearing after six months from the date of application, the application expires. Within three months, the initiator of the IPO can recover the application that was withdrawn from consideration.

As previously reported, in November, the Canaan Creative application expired. Ebang has two more weeks so that HKEX does not freeze the request, and Bitmain has three months.

Right now, I don’t think that any of them could make it to the listing hearing. If either one doesn’t approve it, you can’t make it to the listing hearing.

Anonimous Source of Coindesk

HKEX also pays special attention to financial statements and cryptocurrency savings of companies. According to the source CoinDesk, the exchange carefully ensures that the initiators of the IPO regularly disclose information about the losses.

Note, according to Bitcoinist, the losses of the mining company Bitmain in the third quarter of 2018 were estimated at $ 740 million.

Meanwhile, a Twitter account BTCKING555 published information that Bitmain's cryptocurrency savings had decreased to $ 80 million.

However, CoinDesk sources also added that, perhaps, HKEX simply delays approval of applications due to uncertainty.