Crypto bill provokes panic selling, resulting in a 20% drop in price

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After the Indian government proposed a bill on Tuesday evening aiming to ban private cryptocurrencies while allowing the RBI to regulate official digital currencies, crypto traders responded to panic selling. Cryptocurrency prices in the rupee-linked Indian market fell by up to 20% before recovering on Wednesday as exchanges assuaged traders’ fears.

“A lot of fear is being seen among Indian crypto investors, especially the ones who entered recently. However, we advise people to pay attention to (Parliament’s) winter session and derive conclusions based on it. The ban reports could turn out to be speculative,” crypto trade The worth of bitcoin, the biggest cryptocurrency, was down 10% towards the rupee at Rs 40 lakh on Wednesday night (the crypto market is open 24/7).

BuyUcoin’s CEO Shivam Thakral stated.

On Wednesday, cryptocurrency trade creators reassured worried traders that their cryptos are safe while also supporting a new plan to regulate digital currencies. They noted that the government’s move is a positive step because a well-defined framework will not only aid with organized adoption but will also put a good test on unregulated crypto marketplaces, which is a priority for regulators.

“There’s no such definition laid out around public and private crypto. But the context here seems to suggest that public crypto resembles CBDCs (central bank digital currencies, also known as sovereign digital currencies) and private crypto refers to assets like Ripple and Tron,”

BuyUcoin’s Thakral stated.

The bill, which reportedly aims to protect small traders by designating cryptocurrencies as a monetary asset, has significant implications for the unregulated industry. The federal administration plans to unveil it during the forthcoming winter session of Parliament. According to the bill’s outline, it aims to outlaw all personal cryptocurrencies with the exception of “limited exceptions to advance the underlying technology of cryptocurrency and its purposes.”

According to a Bloomberg report published on Wednesday, the federal government could not impose a complete ban. The legislation might set a minimum amount for digital currency investments while prohibiting their usage as legal cash, according to the report.

RBI Governor Shaktikanta Das suggested earlier this year that the central bank could test a digital currency by December. While there is widespread concern over a blanket ban.

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Government’s New Digital Currency Bill Seeks To Prohibit All Private Cryptocurrencies In India

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