India’s top banker Uday Kotak does not approve of star cryptocurrency Bitcoin. The family of Uday Kotak, billionaire managing director of Kotak Mahindra Bank Ltd, is setting up an office to invest in assets including private equity, stocks, and real estate worldwide, but not in any cryptocurrency, Bloomberg reported.
“While the concept of cryptocurrency is alluring, as its value cannot be influenced by any government, the family office will not look at investing in it,” Venkat Subramanian, who will be managing the family office, said in an interview to Bloomberg.
Interestingly, while Kotak Mahindra Bank is disapproving of cryptocurrencies on the back of news that the Indian government has time and again warned against it likening it to Ponzi-schemes, world’s top banker Jamie Dimon took a U-turn on Bitcoin and said that he regrets calling it a fraud.
Meanwhile, as cryptocurrencies’ popularity soars, the market is getting vulnerable too. The cryptocurrency market on Tuesday was trading in red; not just Bitcoin slumped but others such as Litecoin, Ethereum tanked too, and as much as 20%. While the cryptocurrency mania continues, one decision by one of the many websites led to this bloodbath in the cryptocurrency world.
CoinMarketCap posted a tweet on Monday, saying that it was excluding some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity. “We are working on better tools to provide users with the averages that are most relevant to them,” it added.
After the announcement, the total market capitalisation tanked by more than $150 billion. Bitcoin slumped as much as 14 percent as the world’s largest cryptocurrency continues to be whipsawed by concerns about regulation and demand from Asia.
Some reports also suggested that both China and South Korea are increasing oversight on trading and mining of cryptocurrencies. Meanwhile, Reuters reported that two US companies withdrew proposals to launch bitcoin-based exchange-traded funds pending before the Securities and Exchange Commission (SEC) on Monday, citing ongoing concerns by the regulatory agency.