Crypto prices fall as India announces bill banning private cryptocurrencies
Prices of nearly all cryptocurrencies plummeted by 15% or more just hours after the Indian government announced that it will introduce a cryptocurrency bill in the Parliament's winter session. Once passed, the bill will ban all private cryptocurrencies with "certain exceptions" and facilitate the creation of an official digital currency issued by the Reserve Bank of India. Here are more details.
Why does this story matter?
If the new cryptocurrency bill gets passed, India may not lift the ban as it had done earlier. The country had long been mulling a ban on the unregulated cryptocurrency market. It also debated the digitization of the Rupee. In his first public remarks on crypto last week, Prime Minister Narendra Modi asked democratic nations to ensure cryptocurrencies do not "spoil our youth."
Bitcoin value dropped by nearly 17%
As of 11:45 pm on November 23, most big-ticket cryptocurrency coins, all privately managed and unregulated, dropped in value by around 15%, NDTV reported. Bitcoin was reportedly trading 16.91% lower at Rs. 38,76,950 against the Rupee. Ethereum dropped by 14.58%, to trade at Rs. 2,92,897. Meanwhile, Tether was down by nearly 18%.
What is the new crypto bill?
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is one of the 26 bills listed for introduction in Parliament when the Winter Session commences on November 29. It will reportedly ban the use and circulation of private cryptocurrencies. However, it will allow exceptions to promote the underlying technology, which is likely a reference to the blockchain.
Don't panic: WazirX founder
Over 15 million people own cryptocurrency in India, tweeted Nischal Shetty, the founder and CEO of cryptocurrency exchange WazirX. He urged investors to have faith as "more people within (the) government are aware of how crypto works." "This is not the end but the beginning of crypto regulations in India," Shetty wrote, "There are ways to curb bad activities and promote innovation. Don't panic."
Shetty's thoughts about the new bill
Day 1119— Nischal (WazirX) ⚡️ (@NischalShetty) November 24, 2021
All of us want regulation. We’ve been pushing for it from the last 1000+ days
Finally when regulation process has begun, why panic?
We need to have faith in our law makers. There’ll be discussions deliberations
Ultimately, innovation will win 🇮🇳#IndiaWantsCrypto