Regulatory discussions in India about the ban on cryptocurrencies have triggered panic sales on the major cryptocurrency exchange WazirX, which has led to a sharp fall in the prices of leading cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).
India’s cryptocurrency prices collapsed shortly after Parliament announced the introduction and inclusion of 26 new bills for the winter session, which included cryptocurrency and regulation of the official digital currency law of 2021. As Cointelegraph reported, the bill requires a legislative vote on official digital creativity. Coins under the ban on “all private cryptocurrencies” from Monday.
A massive sale on WazirX on Wednesday morning at 3:30 UTC caused the price of bitcoin to plummet from about INR 4,600,000 ($ 61,820.73) to Rs 391,765 ($ 52,650.55), down 14.8% on two hours. Similarly, other popular tokens, including Ether and Cardano (ADA), have fallen in value on the local exchange.
Bitcoin price crash on WazirX. Source: WazirX
In an interview with Cointelegraph, WazirX CEO Nishal Shetty explained that the Indian cryptocurrency market is usually traded at a premium over the global market:
“This panic sale event led to a correction in the Indian market and prices reached world levels.”
Shetty also cited various uses for cryptocurrency as an asset or benefit, citing former Indian Finance Minister Subhash Chandra Garg’s proposal that “there should be a ban on the use of cryptocurrency, if any.”
Jay Howe, CEO of the crypto exchange OKEx, told Cointelegraph about the need for a cautious approach to regulating cryptocurrencies in India:
“India is home to the largest number of cryptocurrency holders in the world, and the burden falls on the government to protect the interests of a large number of crypto investors in the country.”
Commenting on the Indian cryptocurrency ban, BTC Markets CEO Caroline Poehler said, “This ban will not work in the long run and will be a step back,” adding that “the ban is not an option to protect investor interests.” Bowler stated:
“The problem with cryptocurrency is that although governments may try to ban it or try to limit it, the decentralized nature of technology forbids it to some degree.”
Indian blockchain investor Evan Loutra repeated Bollers’ thoughts by telling the Cointelegraph that it was impossible for governments to restrict access to cryptocurrencies, “by design, it would be impossible.” Referring to the rapid development of infrastructure in El Salvador amid the widespread use of bitcoin, the young entrepreneur believes that the Indian government will soon be forced to accept and handle cryptocurrencies:
“First it happened with the public, then with the banks, and now the government will also need to study and deal with cryptocurrencies in the future to metavers.”
As a final word on advising Indian inventors, Shetty believes in the need to have faith in our legislators. “Let’s not panic,” he concluded.
RELATED: Right-wing Indian group demands tighter regulation of cryptocurrency
This came after the parliamentary debate on cryptocurrency on 15 November, where a large number of regulators concluded that even if cryptocurrency could not be stopped, it should be regulated more strictly.
In August, a spokesman for the Reserve Bank of India said they plan to launch the first trials of the central bank’s digital currency by the end of 2021. India is currently one of the largest markets in the world with over 20 million crypto investors. …