India’s regulatory discussions around a crypto ban led to panic selling on WazirX’s largest crypto exchange, which resulted in a huge drop in the prices of top cryptocurrencies like Bitcoin (BTC), Ether (ETH).
Soon after the announcement by parliament to list 26 new bills during the Winter Session (2021), the Cryptocurrency Regulation of Official Digital Currency Bill, 2021, the Indian crypto market crashed. According to Cointelegraph, the bill would allow a legislative vote on creating a digital currency and banning all private cryptocurrencies. It will be up for a vote starting Monday.
On Wednesday morning, WazirX witnessed a massive sell-off that lowered Bitcoin’s price from almost 4,600,000. Indian rupees ($61820.73) down to 3,917.659 rupees ($52,650.55), an increase of 14.8% in just two hours. Similar events occurred for other popular tokens such as Ether and Cardano, which saw a double-digit drop in their local prices on the exchange.
WazirX: Bitcoin price crash Source: WazirX
Nischal Shetty, CEO of WazirX, spoke to Cointelegraph about how the Indian crypto market trades at an advantage compared to the global.
“This panic selling event has caused the Indian market to correct, and the prices have reached the global level.”
Shetty also highlighted the many uses of cryptocurrency as an asset or utility. He also quoted Subhash Chandra Garg, former Finance Secretary of India, who suggested that there should be a ban on crypto’s “currency” use case.
Jay Hao, CEO at OKEx crypto exchange, spoke to Cointelegraph about India’s need for a balanced approach to regulating crypto assets.
“India has the largest number of crypto-owners in the world. The government is responsible for protecting the interests of large numbers of crypto investors in India.”
BTC Markets CEO Caroline Bowler commented on India’s crypto ban. She stated that, “This ban will not work in the long term and would be a move backwards.” Bowler also said that “banning” is not an option to protect investors’ interest.
“While governments might try to ban or contain cryptocurrency, its decentralized nature makes it somewhat impossible.”
Shetty advises Indian inventors to have faith and believe in their legislators. He concluded, “Let’s be calm.”
Related: A right-wing Indian group demands stricter crypto regulations
This follows a panel discussion at the parliamentary level on cryptocurrency on Nov. 15. A majority of regulators agreed that crypto cannot be stopped but should be more tightly regulated.
A representative of the Reserve Bank of India stated that preliminary trials were being conducted for a central bank’s digital currency in August. India has over 20 million crypto investors and is one of the most important markets in the world.