Major cryptocurrencies dipped in the Indian market after Government announced plans to ban priate crytpocurrencies
WRX, the native token of Indian crypto exchage WazirX dipped over 20%
The Indian Government will deliberate on the bill in the upcoming Winter Session of the Parliament
YEREVAN (CoinChapter.com) – Prices of major cryptocurrencies crashed in India after news broke out about a proposed law that will prohibit all private cryptos in the country. WRX, the native token of popular cryptocurrency exchange WazirX took a massive hit, dropping over 20% against the Indian Rupee (INR). The huge drop comes as a result of panic selling by Indian investors. The anticipated crypto ban propelled a Fear, Uncertainty, and Doubt (FUD) phenomenon, causing a bloodbath in the Indian market.
WazirX (WRX) dipped 20% after India announced plans to ban private cryptocurrency. Credit: WazirX
However, WazirX (WRX) was not the only crypto to take a blow. All major cryptocurrencies took a tumble, causing the Government to receive a lot of flak from crypto supporters.
Indian Parliament to take a call on cryptocurrency regulations
According to the official Parliament bulletin, the Indian Government will introduce a crypto bill in the Lower House of the Assembly in the upcoming winter session deliberations. The Finance Ministry will table “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” for introduction, consideration, and passion, according to the circular.
“To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,”
the bulletin reads.
While the bill will facilitate the creation of the digital Rupee by the Reserve Bank of India (RBI), the crackdown proposal has left people frowning.
However, some investors also pointed out that the Government only plans to ban private cryptocurrencies, indicating that most tokens will still be allowed.
No need to worry govt are doing so that terror financing ,money laundering stops . Bitcoin and other currencies are not being banned!! pic.twitter.com/M8DR3IcWQT
This reassurance helped the markets recover slightly, preventing more blood on the charts. Others investors jumped at the opportunity to buy the dip, stocking up on assets at a discounted price.
Cryptocurrencies find little opposition in Government circles
Earlier this month, representatives of the Indian crypto industry had met the Indian Parliamentary standing committee on finance. After deliberations, the participants had come to a consensus not to ban cryptocurrency in the country. The sides had also agreed that the sector has to be regulated to prevent misuse.
Ruling party BJP leader Jayant Sinha, who heads the parliamentary committee, had also come out in support of cryptocurrencies.
“It is very important to harness the force of this crypto technology and enable it for our domestic users in an appropriate, balanced way,”
he had argued.
The decision to table the crypto regulations bill comes as no surprise. Finance Minister Nirmala Sitharaman had announced earlier that her department was working on a new bill that would define the status of the ambiguous industry in the country.
Days before the Parliamentary commission’s meeting, Prime Minister Narendra Modi had also chaired a similar meeting about cryptocurrencies. The local media reporting on the meeting claimed Government’s stance viz a viz crypto to be “progressive and forward looking”.
Last week, the Indian PM Narendra Modi delivered the keynote address at the Sydney Dialogue. During his speech, he also touched on the growing cryptocurrency industry. Modi called on all democratic nations to work together to ensure cryptocurrency “does not end up in wrong hands.”
While the markets have reacted to the news, it is unlikely that the Indian Government will ban all cryptocurrencies. However, the bill is likely to pass before the Parliament meets for the Budget Session due in February.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he urrently works as a reporter at CoinChapter.
LAGOS (CoinChapter.com) — David Schwartz, Ripple’s CTO has slammed Tesla CEO, Elon Musk over his decision to buy social...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.