Big Ban Fear Hits Crypto
After being startled by the phrasing of a government announcement that implied a ban on all private virtual coins, Indian cryptocurrency holders panicked and flooded the exchanges at midnight Tuesday. The most valuable cryptocurrencies, such as Bitcoin and Ethereum, have seen their prices plummet by as much as 15%. Investors were reassured by cryptocurrency exchanges, who advised them not to sell too soon.According to the Lok Sabha bulletin issued Tuesday evening, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which will be introduced in the next session of Parliament, “seeks to prohibit all private cryptocurrencies in India” but allows for “certain exceptions to promote the underlying technology and its uses.”
Fears were prompted by the description, which was similar to that used earlier this year when news of a ban initially surfaced. Based on meetings they’ve had with the government and regulators in recent months, crypto sector executives believe the panic is premature.On popular exchanges including CoinDCX, WazirX, and crypto exchange aggregator CoinSwitch Kuber, the value of these coins has rebounded to some extent since Tuesday.
“As of now,” CoinSwitch Kuber founder and CEO Ashish Singhal tweeted, “I urge all crypto asset investors in the country to be cool, do their own research before coming to a hasty judgement.”Singhal is also the co-chair of the Internet and Mobile Association of India’s Blockchain and Crypto Assets Council (BACC) (IAMAI).
According to WazirX CEO Nischal Shetty, trading volumes increased by 50% from Tuesday night’s average. By Wednesday evening, the selloff appeared to be slowing off, but experts indicated it was still a sellers’ market. Late Tuesday, the selling began in earnest, with the contents of the bulletin being broadcast on TV and social media platforms.
“New investors who started investing in 2021 saw a selloff at BuyUcoin,” said Shivam Thakral, CEO of BuyUcoin, a local cryptocurrency exchange.The revelation came as a complete surprise to most new investors.
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