Sushmita Goswami | Nov 26, 2021 |
Cryptocurrency prices fall as the Indian government considers a bill to regulate the industry
Prior to the Winter Session of the parliament, the Union administration listed a bill that would outlaw most private cryptocurrencies, causing their local prices to plummet as selling intensified.
The Union government is planning to regulate virtual currencies and create a framework for the official digital currency that will be issued by the Reserve Bank of India through the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
According to the legislative agenda for the Winter Session, which begins November 29, only specific cryptocurrencies will be allowed to promote the underlying technology and its applications.
The measure aims to “establish a facilitative framework for the formation of the official digital currency to be issued by the Reserve Bank of India,” according to the Lok Sabha website. It also aims to outlaw all private cryptocurrencies in India, with some exceptions to encourage cryptocurrency’s underlying technology and applications.”
Despite the fact that the exact features of the law to ban cryptocurrencies are unknown, BloombergQuint reports that panic triggered widespread selling on local exchanges, resulting in a greater drop in rupee values compared to abroad markets.
“Bitcoin was down 24 percent in the last 24 hours on WazirX, one of India’s largest exchanges. The coin is down approximately 1%, according to CoinDesk, a news service that also collects pricing information. On local exchanges, Ethereum is down 23%, while it is up roughly 2% internationally. “Recently popularised meme currencies are also selling off,” according to the study.
It tweeted, warning customers not to panic sell, amid complaints of delays on WazirX caused by a rush.
For instance, if more people are willing to sell crypto in INR market instead of USDT market, you'll see slightly lower crypto prices in the INR market.
Lastly, we also request all our users to not get afraid and panic sell. 🙏
(3/3)
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) November 23, 2021
As a result of the panic selling, local prices fell by around 15% compared to foreign markets, according to the head of a local exchange. The 15 percent percentage was also published by NDTV.
There is currently no rule or prohibition in place in the country regarding the usage of cryptocurrencies.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
