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Chilean and Indian banks ban purchasing cryptocurrencies

Summary:

  • The sole Chilean bank working with digital currency exchanges decides to stop servicing their accounts
  • Indian people will be no longer able to purchase virtual currencies through their bank accounts
  • Danske Bank, the leading Danish bank, bans investments in crypto-related instruments

Bitcoin and its major peers have no reprieve and keep falling. Moreover, the latest torrent of media reports are not conducive to digital coins as there are more and more banks banning purchases of them. Let’s begin with the story coming from Chile where Banco del Estado de Chile, operating as Banco Estado being the only bank in the South American nation working with cryptocurrency exchanges decided to stop servicing their accounts. In a statement the bank said "Banco Estado has decided not to interact with companies that issue or generate cryptocurrencies, that provide brokerage and intermediary services with cryptocurrencies, and do not serve as a platform for crypto exchange transactions". In response Orinox, the country’s exchange offering Bitcoin trading and having a daily volume of $83,000, criticized the bank for its "incorrect and anti-competitive" decision. The Chilean crypto exchange added that "we hope that before this process is finished, we will already have a new solution to continue operating Orionx".

link do file download linkAfter drawing a death cross pattern at a daily time frame the most famous cryptocurrency keeps sliding. What’s more, the price failed to break above $7300 and it drew a bearish engulfing in the aftermath. It certainly does not bode well for bulls going forward, and one may suspect sellers could be able to push the price toward a support area placed at $5500. Source: xStation5

Indian people will be no longer able to purchase virtual currencies through their bank accounts

The Indian central bank (RBI) chose to implement the sweeping policy on Thursday aimed at banning residents from purchasing cryptocurrencies through their bank accounts. The Reserve Bank of India wrote in its statement that "Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time".

link do file download linkTraders wanting to deposit fiat currency at cryptocurrency exchanges have been forced to switch to other platforms such as LocalBitcoins. Transactions executed via the platform (denominated in Indian Rupee) currently account for circa $1 million in volume on a weekly basis. Source: ccn.com

Danske Bank, the leading Danish bank, bans investments in crypto-related instruments

The Danish bank informed that it did not wish to "support the investment environment surrounding cryptocurrencies". In the document outlining the bank’s negative position with regard to digital currencies the company states that "they (virtual currencies) lack the investors and consumer protection typically connected with traditional currencies and investments". As a reason behind its decision Danske Bank underlines that digital currencies have been involved in criminal transactions as they can be easily used in such activities due to the lack of transparency and regulatory control. Nevertheless let us add that bank is not going to block the usage of credit cards issued by itself to cryptocurrency transactions.

link do file download linkLitecoin is nearing its important support area localized a touch above $100. A breakout of this level could pave the way for a much deeper pullback. Source: xStation5

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