India’s cryptocurrency prices plummeted after the announcement of the cryptocurrency bill


India’s regulatory discussions surrounding the crypto ban triggered a panic sell-off by the major crypto exchange WazirX, leading to a sharp drop in the prices of leading cryptocurrencies, including Bitcoin (Bitcoin) And ether (Ethereum).

Soon after Parliament announced the introduction and listing of 26 new bills at the winter meeting, India’s cryptocurrency prices plummeted, including the 2021 cryptocurrency and official digital currency regulatory bill.As Cointelegraph reported, the bill seeks Legislative vote on the creation of an official digital currency At the same time, “all private cryptocurrencies” will be banned from Monday.

WazirX’s massive sell-off at 3:30 UTC on Wednesday morning dropped the price of Bitcoin from nearly 4,600,000 Indian rupees (61,820.73 US dollars) to 3,917,659 rupees (52,650.55 US dollars), a 14.8% drop in two hours. Similarly, other popular tokens, including Ether and Cardano (Have), experienced double-digit price depreciation on the local exchange.

The price of Bitcoin on WazirX plummeted. source: WazirX

In an interview with Cointelegraph, WazirX CEO Nischal Shetty emphasized that the Indian cryptocurrency market usually trades at a premium compared to the global market:

“This panic selling incident has caused an adjustment in the Indian market, and prices have reached global levels.”

Shetty also pointed to various use cases of cryptocurrency as an asset or utility, citing the advice of Subhash Chandra Garg, the former Minister of Finance of India, that “crypto-currency use cases should be banned”, if any.

Jay Hao, CEO of cryptocurrency exchange OKEx, told Cointelegraph that a subtle method is needed to regulate crypto assets in India:

“India has the largest number of cryptocurrency owners in the world, and the government has a responsibility to protect the interests of a large number of cryptocurrency investors in the country.”

Commenting on India’s crypto ban, Caroline Bowler, CEO of BTC Markets, said: “This ban will not work in the long run and it is retrogressive,” adding that “the ban is not an option to protect the interests of investors. Bauer said:

“The problem with cryptocurrency is that while the government may try to ban or try to contain it, the very decentralized nature of the technology somehow prohibits this.”

Indian blockchain investor Evan Luthra supported Bowler’s thinking process. He told Cointelegraph that it is impossible for the government to restrict access to cryptocurrencies. The rapid infrastructure development in the case of currency adoption by the mainstream believes that the Indian government will soon be forced to accept and process cryptocurrencies:

“It happened to the public first, then the banks, and now the government also needs to learn and deal with cryptocurrencies in the future of Metaverse.”

As a final recommendation to Indian inventors, Shetty believes that we need to have confidence in our legislators. “Let us not panic,” he concluded.

related: Right-wing Indian group calls for stricter encryption regulations

This is after a parliamentary panel discussion on cryptocurrencies on November 15th. Multiple regulators concluded that although cryptocurrencies cannot be prevented, they should be more strictly regulated.

In August, a representative of the Reserve Bank of India stated that it plans to start preliminary trials Central Bank Digital Currency Before the end of 2021. India is currently one of the largest markets in the world, with more than 20 million cryptocurrency investors.