Crypto market in India tumble following the government bill announcement

Regulatory discussions in India over the crypto ban caused panic selling on major crypto exchange WazirX, resulting in massive price drop on leading cryptocurrencies including Bitcoin and Ether.

Crypto market in India tumble following the government bill announcement

The Indian cryptocurrency market crashed soon as the parliament announced to introduce and list 26 new bills in the Winter Session, which included the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The bill seeks a legislative vote on creating an official digital currency while imposing a ban on all private cryptocurrencies.

A mass sell-off took place on leading exchange WazirX in the morning, tanking the price of Bitcoin from nearly Rs. 4,600,000 ($61,820.73) to Rs. 3,917,659 ($52,650.55), a drop of –14.8% within two hours. Similarly, other popular crypto including ETH and ADA experienced double-digit price depreciation locally on the exchange.

Jay Hao, CEO of crypto exchange OKEx, said on the topic that, “India is home to the highest number of crypto owners in the world and the onus lies on the government to protect the interest of a large number of crypto investors in the country.”

Commenting on India's crypto ban, BTC Markets CEO Caroline Bowler said, “This ban won’t work in the long-term and would be a step backward,” adding that “banning is not an option to protect investor interest.”

The news comes forward after a parliamentary panel discussion on cryptocurrency on Nov. 15, where a plurality of regulators conclude that crypto can’t be stopped, it should be regulated more heavily.

Earlier in August, a representative from the Reserve Bank of India said that it planned to commence preliminary trials for a central bank digital currency before the end of 2021. 

India is currently one of the largest markets in the world, with over 20 million crypto investors.

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