After reeling from the recent crypto-crash, Bitcoin is yet to straighten itself up with major Finland banking institutions block transactions with a key exchange. Prasos Oy blocking is a major blow to Swedish investors and could affect the global Bitcoin price and traction, for now. This was unanticipated and could impact badly not only on Bitcoin (BTC) but other major digital currencies as well.
Cryptocurrencies are overly volatile and this could mean price fall in the short time. The ripple effect will affect other cryptocurrencies with smaller Altcoins benefiting in terms of adoption and traction. Investors are already strategizing on how to tap into the growing alternative coin popularity and growth opportunities.
Ripple Effects on Cryptocurrency Ban
At the time of writing, four banks in Finland have resolved to block Prasos Oy transactions. Finland banks perceive digital currencies as their eminent competitors and the current disruption in the financial sector is the reason for the block. With many digital currency ecosystems playing a major role in international money remittance, the ban might be a short term solution for thee banking landscape.
According to Prasos Oy exchange Chief executive officer, Henry Brade, the growth of “international transaction volumes” has begun to bit for the banks and the disruption leads to the banning of the exchange. The market for the financial institutions and remittance service providers in cross-border transactions seems to shrinking owing to the popularity of cryptocurrencies and their affiliate exchanges.
Will Bitcoin Price “Unpredictability” Come to an End Soon?
With key Bitcoin and crypto investors still at crossroads, the Bitcoin price “unpredictability” seems to be taking a new turn. The banks are not offering a suitable options and information is scanty on how the problem should be resolved. The Bitcoin price and the transaction cost is what the banks appear to be against.
With many investors moving out of the banking halls and adopting the digital currency revolution, the ban can only mean one thing; the banks to embrace the Bitcoin blockchain technology and share the little spoil and benefit the consumer.
The anti-money laundering act, according to Prasos Oy could be one of the reasons holding back banks from full-fledged cryptocurrency transacting. This could be a shot term setback for cryptocurrencies. Banks are keeping their fingers crossed to get clarification of which cryptocurrencies are associated with the dark world business and Bitcoin is definitely not.
Bitcoin (BTC) Price in the Market
Since the crypto-crash, the Bitcoin (BTC) price has slumped and has been hovering around the $10k threshold and has gone below in the recent weeks and this should get even the ardent BTC investor worried.
According to CoinMarketCap reports, BTC is trading at $9875.59. This is a 24 hour drop of 10.63% at the time of writing. With the Finish bank ban, this could spell a further drop before gaining resistance. As of now Bitcoin HODL could be the only solution for the investor who bought high and is not willing to let go on cheap.
The Future of Bitcoin (BTC) and Finish Bank Ban
According to Prasos, they are waiting for a way forward and expecting regulators in the industry to set and give guidelines for them to be able to continue trading on BTC and other major cryptocurrencies. This might mean waiting longer thus affecting the volumes and adoption by those who trust the exchange to buy and sell BTC.
Prasos Oy has always made Bitcoin mainstream investment gateway in Finland hence the ban could only mean reduced volumes and traction for the popular coin. With the much hype around Bitcoin, the faster the standoff is resolved the better for the investor and other stakeholders in the financial sector.