Banks and Governments advising against bitcoin in India and Venezuela

By Daniel Zo Bitcoin, Ban, Venezuela, India

During the last couple of months, numerous countries have expressed their opinions on digital currencies, such as Bitcoin. Not long ago, there’s been news related to bitcoin from both Venezuela and India, and it’s not positive.

In Venezuela, it seems like the authorities are becoming tired of hearing about the digital currency, and trying to regulate it. In fact, during the last couple of weeks, authorities in the country have managed to arrest a total of 8 bitcoin miners, who were later accused of stealing energy and cybercrime, whereas others were simply selling ASIC mining hardware. Not only this, but the main bitcoin exchange in Venezuela was also forced to close its doors down to future customers, and close their bank accounts as well.

Venezuela and India

In a way or another, this is quite understandable, considering the fact that Venezuela is dealing with a turmoil-state economy, considering the fact that the national currency has been dealing with a hyperinflationary rate for a good period of time. Not only this, but the Venezuelan government is also subsidizing electricity, thus making it extremely cheap for people throughout the country, thus making it a great destination for those who are interested in bitcoin mining. While the decision to sell energy this cheap is a benefit to both the people and bitcoin miners, the government may actually be taking all the damage from such a decision.

While there is no official law in Venezuela forbidding the use of bitcoin, there are numerous controls being carried out quite often, and arrests are quite usual as well, which is why it is important to be careful when conducting bitcoin-based businesses in the Latin American country.

On the other side of the spectrum, there’s also some news on bitcoin from India. A few hours ago, the Reserve Bank of India decided to issue a new cautionary note on digital currencies, and of course, bitcoin. To give out a little bit of insight, after a cash crisis started by the country’s own government, people were led to mobile payment systems, whereas some chose bitcoin, thanks to its numerous benefits. This has further pushed the government into the financial grave that they dug themselves into, in the first place. It’s worth pointing out that in the cautionary note, the Reserve Bank explained that there are various security issues regarding bitcoin, but also a lack of regulation, which can make using the digital currency quite dangerous. In a statement, they mentioned that:  “The Reserve Bank of India advises that it has not given any license/authorization to any entity/company to operate such schemes or deal with bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc. dealing with virtual currencies will be doing so at their own risk.”

Based on everything that has been outlined so far, what do you personally think about the news from Venezuela and India regarding the digital currency? Let us know your thoughts in the comment section below.