Ripple (XRP) is having an overwhelmingly rough day in the market today, and for good reason. Throughout the beginning of the year, the cryptocurrency sector as a whole has experienced a slew of concerning comments from governments around the world. Now India has some concerning comments of their own, and it’s sending XRP and other cryptocurrencies toward the bottom as it falls below the $1.00 mark for the first time in a long time. Today, we’ll talk about the news out of India, other concerns surrounding cryptocurrency regulation, and what to watch for with regard to XRP ahead.
XRP Heads For The Bottom On India’s Ban Plan
As mentioned above, Ripple fell below the key $1.00 mark in the market today as the result of concerns surrounding regulation. However, this goes a bit deeper than regulation. In fact, it seems like India is looking to move forward with an outright cryptocurrency ban. At the time of writing this article, XRP had reached a low of $0.9288 as concerns that the cryptocurrency sector as a whole would lose the entire Indian market continued to arise.
In a recent announcement, India’s Finance Minister, Arun Jaitley said that India doesn’t consider cryptocurrency to be a legal tender today. As a result, the Indian government is working and willing to take all measures to eliminate the use of any crypto-related asset in financing illicit activities or as part of a payment ecosystem.
China Is Another Source Of Concern
For XRP, China is a very key market. However, more and more, China is becoming an area of upcoming regulatory concern. In fact, back in September, The People’s Bank of China banned fundraising through digital currencies. In fact, the PBOC even said that about 90% of the ICOs launched in the country were fraudulent.
Since then, social networks in China have stopped offering advertisements or any form of sponsored posts having to do with terms like Bitcoin, Cryptocurrency, and ICO. Essentially, as cryptocurrencies grow in popularity, Chinese regulators seem to be dampening the potential growth in the region. This further tightening of regulation could continue ahead, which is a big cause for concern for XRP.
A Silver Lining In South Korea
Recently, we’ve heard quite a bit about potential bans and other regulatory actions surrounding cryptocurrency in another region that is incredibly important to Ripple. That region is South Korea. While the South Korean government is indeed working to find ways to regulate the use of cryptocurrency in the region, recent reports proved to be false.
In the latest update, South Korean Finance Minister Kim Dong-yeon reaffirmed that the government will not ban or suppress the cryptocurrency market within the country. In a statement, the Finance Minister put the ban rumors to rest, saying simply “There is no intention to ban or supress cryptocurrency…”
What’s Next For XRP
There’s no doubt that the coming cryptocurrency ban in India is a concern for XRP, as the cryptocurrency is heavily dependent on the region as a whole. However, with good news out of South Korea, many are hoping that we will see a bit of loosening in China as well. While I hate to admit, I believe this is highly unlikely. Moving forward, the keyword for Ripple is simple, REGULATION. Keep a close eye on regulatory changes around the world that will have an effect on cryptocurrency. Lackluster regulation is a great thing, however tightening regulation will likely cause XRP to continue on a downward trend.