In a recent declaration from the Reserve Bank of India (RBI), it remarked that the citizens of India don’t need cryptocurrencies as the nation’s mainstream financial system had already been working on solutions for cross-border remittances. However, RBI pointed out the legal status of cryptocurrencies in the nation and confirmed that there is no ban on cryptocurrencies.

In RBI’s response to IAMAI’s petition, the bank clarified that the cryptocurrencies are not banned in India; rather, it made it clear that commercial banks and other several regulated financial establishments are prohibited from offering their services to the cryptocurrency business.

The RBI vs crypto hearing has witnessed innumerable happenings in the last few days. You can get a detailed look at what took place inside the court room yesterday.

The RBI also stated that,

The RBI has been able to ring-fence the entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks.

It was a response from the Central bank to a petition filed by the Internet and Mobile Association of India (IAMAI), which requested the Central bank to re-evaluate 2018’s circular to refrain from dealing with cryptocurrencies.

The IAMAI members comprise of cryptocurrency exchanges, which had earlier approached the Supreme Court of India against the RBI action. Earlier this month, in a hearing, the association put forward that banning the trading of cryptocurrencies with the absence of law was a legal business activity; yet, RBI had efficiently banned it by obstructing the access to banking channels.

Further, the RBI had highlighted a few risks, which included money laundering and terror financing by using cryptocurrencies. The supporters of crypto had argued that cryptocurrencies open up the financial sector, which creates a more comprehensive ecosystem. Few of them suggest that payments using cryptocurrencies are much faster and cheaper than mainstream counterparts.

As far as RBI is concerned, cryptocurrencies raise money laundering threats and may finance terrorist attacks explaining,

Any possible avenues which facilitate anonymous cross-border fund transfer have to be acted upon swiftly and stringently dealt with. It is an admitted fact that VCs have been used to purchase illegal and illicit goods ranging from guns and ammunition to drugs.

The Response from RBI also disclosed that, during the discussions earlier in 2018 with the government on whether to regulate or ban cryptocurrencies, the RBI stated that ICOs are prohibited and asset funds in virtual currency are not allowed to operate or set up within the Indian Jurisdiction.

As per legal experts, the viewpoint on crypto trade might pose a risk to sovereignty could be a weak point if not attested with few examples of using virtual currencies to fund terror attacks in the past.

After looking at the developments throughout the day, CryptonewsZ reported that RBI had not done good research before announcing its anti-crypto directive.

The Senate in Mexico has passed the US-Mexico-Canada Agreement (USMCA) trade deal by an overwhelming majority of 107-1.

Mexican President Andres Manuel Lopez Obrador said,

In Mexico, we did our part. The executive (branch) signed and the Senate ratified the USMCA. Now it is up to the Congress of the United States and Canada to do the same. This is good news.

The USMCA will cover $1.2B in trade every year and support 12 million jobs in the US account for a third of US agricultural exports.

The USMCA replaces the North American Free Trade Agreement (NAFTA). US President Trump had opposed NAFTA and said that it favored Mexico and Canada over Americans. His administration had initiated talks with the two countries to make changes in NAFTA. The result was the USMCA.

The US government had finalized the USMCA last year, but it faced opposition from the Democratic Party and hence, the government began consultations with Democrat leaders in the House to address their concerns.

In a major concession to the Democrats, a clause for a 10-year cap on production of patented biologics was removed and cap on production was retained at eight years in Canada and five years in Mexico. This was done to allow greater control over drug-pricing.

Democrats also secured major concessions in worker rights, including those of migrant workers and preventing gender discrimination at the workplace.

After months of negotiations and getting the House Democrats on Board, the three governments of the US, Mexico, and Canada finally signed the USMCA on Tuesday. The US and Canada are likely to take up the Bill in early 2020.

Mexico’s chief negotiator Seade urged the US and Canada to pass USMCA quickly for better jobs and living standards in the region.

As everyone knows, China is the largest importer of oil in the world, and the country is naturally looking at ways to have access to a larger market. To that end, China has decided to establish a new oil and gas trade exchange known as the Greater Bay Area International Energy Transaction Center.

The exchange is an expansive one and is going to connect a wide range of buyers and sellers irrespective of the scales of the trades concerned. Additionally, the market participants will be able to trade in a wide range of products starting from crude oil, energy derivatives, and electricity, ethane, and carbon credits.

China is also setting up hubs powered by cloud-based blockchain technology in Latin America, the Middle East, and Africa. The smaller businesses in China do not have the wherewithal to use advanced technology for their businesses’ needs. That results in the business lagging behind its larger rivals.

The exchange seeks to change that. Chairman of exchange, Gong Jialong, said,

Small businesses do not know where to look. But if you are an exchange member, you have access to all the Chinese counterparts. Ninety percent of small businesses cannot connect with each other, but this exchange is for that purpose.

The Chinese economy may have slowed this year, but there is no doubt that it is going to resume its growth soon. Hence, the demand for oil, gas, and chemicals is only going to rise. The exchange of this nature allows companies in China to get their products directly from the producers in the US. Oil prices are the lowest in the US, and this allows the Chinese participants to get their products at a lower price.

The exchange brings all participants of the market into one platform and allows them to get a better price than usual. For instance, natural gas is frozen and then sent to China from the US. The price of natural gas goes up threefold to ship to China.

The exchange gives China access to a larger market and allows oil sellers to serve a huge market. Russia, one of the biggest oil producers in the world, is looking for new markets to ship to, and Canada is exploring options in Asia after having lost some of the US markets. The Greater Bay Area could well prove to be the best solution to those problems.

There are as many as 70 million people in the area and also includes the lucrative market of Hong Kong. President of The National Center for Sustainable Development, Eric Fang, stated that he believes that the exchange will eventually become highly influential once the trade war with the US ends. He said,

We believe this exchange could rise to be a major center for the future. Once we stop the trade war, you will see a lot of energy supply going to China.

The rise in the prices of US crude and gasoline stocks marked a sharp fall in prices of oil. The data published on Wednesday showed a fall in the price of Brent Crude oil by 19%, which is $63.87 a barrel by 0854 GMT, having dropped by 0.3%. Whereas, West Texas Intermediate crude fell by 33%, which is to $57.78 a barrel, after the loss of 0.5% in the previous session. Following this, US President Donald Trump had signed a petition supporting the protestors in Hong King against this fall in price.

To this, the Chinese government has warned the US that it would be taking “firm countermeasures” against the US for supporting the protestors in Hong Kong. The trade war between the United States and China began soon after President Donald Trump took over the reins and it has continued since then. This fall in the oil prices somewhat irked the war between the two nations. The chief market strategist at FXTM, Hussain Sayed, remarked,

“The approval of the Hong Kong legislation backing protesters is likely to put the trade agreement into question as China has reiterated its threat of retaliation. If investors suspect that the trade agreement is under real danger, expect to see a sharp sell-off in December. For now, investors are taking a wait-and-see approach.”

The investors have begun showing their concern regarding the depression in the economic growth, and as of now, they are looking forward to a meeting with OPEC (Organization of the Petroleum Exporting Countries) that includes Russia, which is scheduled to be held next week. Speculations are on the high that at the meet with OPEC, Russia may exclude condensate, which is a high-premium light oil, that is mainly extracted during the production of gas from crude oil production. However, the news is not confirmed by the Russian Ministry yet, and they are looking forward to opening discussions before taking any such measures.