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Zebpay’s Ajeet Khurana dismisses talk of India banning cryptocurrencies

Arijit Sarkar



Zebpay CEO dismisses India's crypto ban
Credit: Pixabay

India has been making headlines recently after the world’s largest democracy announced the formation of a committee for pursuing the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019.”

While the Indian crypto community raised several concerns, the dismissal of the community’s plea gave birth to an uncertain future for cryptocurrencies in India. This debate was initially sparked in the mid-2018 when the Reserve Bank of India (RBI) released a statement directing all financial entities to “stop dealing with individuals and businesses dabbling in virtual currencies.” Subsequently, Zebpay, India’s biggest cryptocurrency exchange was forced out of the country.

In a recent interaction with Mickey Media, Zebpay CEO Ajeet Khurana insisted that the ban was hyped by the media. He said,

“I have talked to all of the top stakeholders in the Ministry of Finance, the central bank, the securities regulator and despite them having a certain amount misgiving around crypto I have never heard them talk of banning it.”

Lending credibility to his comments, Khurana added that the people responsible for placing a ban on cryptocurrencies “have never said they will ban it.” In the interview, the popular Indian crypto influencer also conceded that pulling Zebpay operations out of India was “one of the worst decisions he’s ever been forced to make.”

Like Khurana, other players in India have also proposed their support for a cryptocurrency regime in the country. WazirX’s Nischal Shetty is one of them. Shetty was in the news recently after he shared the #IndiaWantsCrypto campaign on Twitter. Shetty had this to say about the status of cryptocurrencies in India,

“Other countries try to understand crypto but we have banking ban without research.”

While an official ban on cryptocurrencies has not yet been implemented, the Indian community continues to remain optimistic about the government’s final decision.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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