India's BTC premium exceeds $800, and strong regulation has led to a surge in demand

The more prohibited, the more you want to get it?

The latest data on the scallions found that Bitcoin has a premium of more than $800 on the Indian crypto exchange Bitbns.

India's anti-encryption stance is raising BTC value

According to CoinMarketCap data, as of 8:00 am on June 24, the BTC/USDT in the exchange of Bitbns on the exchange, the price of BTC is 10612.45 US dollars, and in the transaction to BTC / INR, the price of bitcoin is 11497.67, both premiums Up to $ 887 .

In addition, the Scallion query found that in India's largest exchange Zebpay, Bitcoin's premium to BTC/USDT and BTC/INR in the transaction also exceeded $400.

Compared with other regions, the high premium in the Indian encryption market highlights the country's huge demand for bitcoin.

Earlier, Indian lawmakers proposed strict new regulations, and citizens who traded cryptocurrencies would face 10 years in prison. The Investor Education and Protection Fund Authority stated that the regulatory focus is on prohibiting the sale, purchase and distribution of cryptocurrencies, which the holder can waive.

Chan Chang’s CEO Zhao Changpeng commented that the country’s decision to ban cryptocurrencies would only push more people to crypto assets.

"The more prohibited things, the more people want to try."

Why does the Indian BTC have a high premium?

In general, it is not uncommon for cryptocurrencies to have a premium. Last week, there was a $160 bitcoin premium on Tidebit on the Hong Kong Stock Exchange, but India’s high premium seems to be different.

As the Indian government's anti-cryptocurrency measures become more stringent, the way to buy bitcoin has plummeted, but the scarcity and rising demand have pushed the price of BTC soaring .

According to the market view, the high premium of Bitcoin is the verification of the Streisand effect – the more it attempts to suppress, the more bitcoin develops. Although the Indian government has repeatedly introduced policies to limit the adoption of cryptocurrency in the country, it seems that the “coin king” in the local market still releases an irresistible appeal. Moreover, the charm of Bitcoin has not only attracted retail investors, but even mainstream institutions have gradually adopted it.

Shallot Note: According to Wikipedia, the Streisand effect refers to trying to control, prevent the public from understanding certain content, or suppress specific network information, and the result is counterproductive, making the event more familiar. Since the advent of the Internet, the Streisand effect has become one of the new phenomena.

But why is the demand for bitcoin in the Indian market increasing dramatically?

To support the Indian rupee, the Indian government has strengthened its capital control policy. However, as the country’s debt continues to rise and the inflation rate continues to rise, the Indian rupee’s exchange rate cannot remain stable.

Therefore, when the Indian people are worried that the rupee will suffer a sharp devaluation, Bitcoin will just play a role in value storage and become an excellent safe haven currency .

India's anti-crypto monetary policy is tightening

Earlier this month, Bloomberg reported that India might consider imprisoning cryptocurrency investors, traders, and miners for one to ten years.

This claim is said to be part of the 2019 draft "Prohibition of Cryptographic and Official Digital Currency Regulations Act." In addition, any offences related to such conduct are identifiable and not bailed. However, such penalties will depend on the severity of the crime and the actual or expected return of the offender. The draft bill also introduces a 90-day time limit for all cryptocurrencies to be disposed of by the cryptographic holder.

At present, the Indian government has not issued a formal notice, but many people believe that India's move will boost the application of cryptocurrency .

Morgan Creek founder Anthony Pompliano said, "India proposes to impose 10 years in prison on those who hold, mine or trade cryptocurrencies. I doubt whether this will be passed. But if it does, it may be counterproductive, but it will promote The application of cryptocurrencies, after all, people do not like to be told how to deal with their wealth."

Zhao Changpeng also made a comment on the "Indian Bitcoin Ban Act", saying

"The Indian bill will really promote the adoption of privacy coins, which account for one-fifth of the world's population."

Source: Shallot blockchain