Cryptocurrency prices crash in India due to fears of a crypto ban. According to reports, the Indian government intends to submit a bill. At the forthcoming winter session of Parliament that would prohibit the use. Of most private cryptocurrencies. This has caused cryptocurrency prices to plummet on the country’s local exchanges.
On Wednesday, the values of numerous popular cryptocurrencies, including bitcoin, ethereum, and dogecoin. Fell by approximately 15 percent to 20 percent in Indian rupee terms.
A fine of up to Rs. 10 lakh or imprisonment for up to 10 years, or both, is applicable. Under the draft Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. Mining, holding, selling, issuing, transferring and using cryptocurrency in India is prohibited under the bill.
As Cryptocurrency prices crash, the draft measure, which was introduced on Tuesday, allows for the use of procedures or technology. Behind any cryptocurrency for the purposes of experimentation, research, or teaching in educational institutions. India is also attempting to build a framework for the country’s official digital currency. Which will be issued by the country’s central bank as a result of this legislation.
Despite acknowledging that cryptocurrencies provide benefits such as improved record-keeping. And more efficient cross-border payments, the draft bill expresses concern. About the potential use of cryptocurrencies for money laundering. Consumer risks, and a threat to the financial stability of the country.
At the moment, there are no restrictions in place in India regarding the use of cryptocurrencies. As part of the proposed bill, the government contemplates outlawing “all private cryptocurrencies.” However there may be some exceptions that have not yet defined in detail.
The bill is expected to be introduced in the next parliament session
Due to rumours that the law will introduced in the upcoming parliament session. Which is slate to begin on November 29, the local cryptocurrency trading app WazirX. Experienced a spike in user activity, which ultimately resulted in the app’s crash late on Tuesday.
WazirX consumers who attempted to sell their assets told that they were unable. To buy or sell cryptocurrencies on the platform, according to a number of reports.
Nischal Shetty, the CEO of WazirX, appealed to investors not to panic. And to continue to place their trust in cryptocurrencies.
“This is not the end, but rather the beginning of cryptocurrency regulation in India,” says the author. The industry has given the opportunity to speak. According to Mr Shetty. Legislators are aware of the expanding market.
“In India, cryptocurrency is own by more than 15 million people. “There are ways to rein in the bad behavior. While also encouraging innovation,” he continued.
The collapse of the domestic stock market, on the other hand, has had no effect on the global cryptocurrency market. With bitcoin continuing to trade near the $57,000 mark.
Despite the fact that a bill to regulate cryptocurrencies in India has not yet introduced. The government has held a number of meetings with investors and stakeholders throughout the year. Indicating that it may have shifted its position since the bill was first developed.
During the course of these debates, sources close to the government have also stated. That he government is considering regulating cryptocurrencies by discouraging cryptocurrency trading by imposition of high taxes. Rather than outright banning the virtual tokens.
Recently, Prime Minister Narendra Modi presided over a high-level discussion on the use of cryptocurrencies with government officials.