Top cryptocurrencies including Bitcoin, Ethereum, USDT, Shiba Inu, Dogecoin, Sandbox among others crashed overnight on Indian crypto exchanges as investors panicked following the government’s plans on the bill seeking to prohibit private cryptocurrencies while allowing certain exceptions to promote the underlying technology.
On Wednesday morning, as on WazirX, Bitcoin’s price dropped 16.75 per cent, Ethereum plunged 12.1 per cent, Shiba Inu dropped over 20 per cent, Dogecoin was down by over 16 per cent, Sandbox by 4 per cent and USDT or Tether by over 14 per cent.
This happened after the Lok Sabha’s summary of bills to be tabled in the winter parliamentary session released in the evening before mentioned that the government is seeking to prohibit private cryptocurrencies in the description of The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
Nischal Shetty, Founder, WazirX said, “While the description of the draft bill appears to be the same as in January 2021, several noteworthy events have occurred since January. First, the Parliamentary Standing Committee invited a public consultation, and then our Prime Minister himself came forward to call for crypto regulations in India. That being said, let’s respectfully wait to find out more about the draft bill to be tabled in the Parliament.”
Positive Outlook
This comes as a shock at a time when industry players and investors were equally hopeful that the government isn’t looking to entirely ban but regulate cryptocurrencies. Despite The Reserve Bank of India’s vocal stand to not allow cryptocurrencies in the country, the government has shown interest by holding several meetings in November, first with the RBI and then a Parliamentary Standing Committee on Finance meeting with the stakeholders.
Global crash of prices
Separately, over the past few weeks, Bitcoin’s valuation globally dropped nearly 20 per cent amidst regulatory uncertainty in the US, Bloomberg report. Cryptocurrency related crimes, tax evasion, high volatility continues to remain key concerns for lawmakers across countries.