The government of India once again taking a hard-line regulatory approach to the growing demand for cryptocurrencies in the country.
Company Bitmain, a leading manufacturer of ASIC chips, which are used for mining bitcoin, refuses to sell mining equipment to India due to a new ban on imports.
Bitmain announced the official exit from the market and the decision to terminate the provision of services to the Indian customers on December 1 in Twitter:
“Hi! Indian customs authorities have informed us of banning imports of equipment for mining cryptocurrency to seek clarification from the Directorate General of foreign trade (DGFT). Therefore, at present the equipment for miners in India will not be sold”.
The company Bitmain (one of the world leading suppliers of mining equipment) from the Indian market undoubtedly accounts for an increasing transition of the use of cryptocurrency in the country illegally in the region because the government of India not inclined to leniency in regulation.
Miners against DGFT – refundable?
DGFT is the Agency of the Ministry of Commerce and industry of India regulates foreign investment and trade assets in the country. Real-time Bitmain will not execute orders out of India before receiving the green light from the authorities.
A few days ago customs officials of India first reported by Bitmain on the conservation of the regulatory prohibition to receive clear guidance from the DGFT. These measures correspond to the obvious attempts of the Indian government to deprive the motivation of the growing trend of the use of cryptocurrency in India. Indeed, the restriction of the importation of mining equipment is a heavy blow to cryptocurrency investors and supporters in the country.
These severe measures led to serious concern Bitmain customers whose orders are already in progress. For its part, the company assured that the money for the equipment not delivered to India will be returned.
Despite this, the situation causes concern Bitmain customers, whose orders were expected customs clearance during the introduction of the ban.
Equipment Bitmain now available for Indian users.
India will follow China and impose a General prohibition?
Before import mining equipment was not a problem for Indian customers. But after the implementation of administrative programmes it becomes clear that the Indian government does not deliberately continue to endorse bitcoin and other cryptocurrencies. For example, recently the Finance Minister of India Arun Jaitly called cryptocurrency trading illegal in the country.
Now users of cryptocurrencies in India are concerned more than ever, due to the rapid development of the regulation. Ever wonder whether India will follow China’s example and impose a General ban on cryptocurrencies and exchanges.
Many cryptocurrency investors gave the government a request to receive information. They complain about the lack of a clearly defined document explaining the current situation with the regulation.