Since a day ago, crypto investors have been in a panic mode due to news that cryptocurrency will be controlled by the government soon. Bitcoin, Solana, and other cryptocurrencies all plunged in price the day before, but gained somewhat on Thursday, November 25, as markets stabilised after the first ripple impact. Two days ago, the government announced that a Bill would be introduced during the Parliament’s winter session. The ‘Cryptocurrency and Regulation of Official Digital Currency’ Bill aims to abolish private digital tokens, with the exception of a few, and replace them with the Reserve Bank of India’s Central Bank Digital Currency.
According to crypto trading website WazirX, bitcoin was trading at Rs 43,69,008 in the Indian market. This was slightly higher than the 34,00,000 level set on Wednesday, November 24 by the world’s largest cryptocurrency. On Wednesday, cryptocurrency prices in India fell by up to 20% as panicked investors sold their holdings.
“On WazirX on Tuesday night, we noticed a lot of selling in the rupee (INR-crypto) market. We noticed a 15-20% drop in prices as a result of panic selling by investors. However, the market is showing signs of revival and is currently trading at a 3-4 percent discount. When the details of the bill were revealed in January, a similar knee-jerk reaction was evident,” WazirX CEO Nischal Shetty was cited as saying by Times of India.
According to the government, a measure to ban all private cryptocurrencies in India would be submitted in the upcoming winter session of Parliament, with a few exceptions to promote blockchain technology. “The Bill also wants to outlaw all private cryptocurrencies in India, but it makes specific exclusions to promote cryptocurrency’s core technology and applications.” “The legislative business was listed in a bulletin on the Lok Sabha’s website.
In addition, the Reserve Bank intends to develop its own digital money. “To establish a conducive environment for the formation of the Reserve Bank of India’s official digital currency, “It was also added. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was not mentioned in the Lok Sabha bulletin.
Former RBI governor Raghuram Rajan said in a report by CNBC TV18 that only two or three of the 600 or so cryptocurrencies in the Indian crypto industry will survive after the implementation of the impending Bill.
“It’s a bubble if goods are valuable merely because they will be more valuable in the future.” “According to Rajan, who spoke to CNBC-TV18, “…a lot of cryptos are valuable solely because there is a bigger fool willing to buy them.””
The present cryptocurrency craze in India has been compared to the tulip fever in the Netherlands in the 17th century, according to the former RBI governor.
However, in the current situation, experts advise investors not to make rash decisions.
“The crypto sector is hoping that the government would include stakeholders from the industry in the bill’s preparation.” We will obey the government’s instructions at CoinSwitch Kuber. For the time being, I advise all crypto asset investors in the country to be cool and conduct their own study before jumping to conclusions. Rather than relying on secondary sources of information, investors should wait for a government statement on this “Founder and CEO of CoinSwitch Kuber, Ashish Singhal, said
Only private currencies would be regulated, according to the government, which has stated repeatedly that it will not completely outlaw cryptocurrency in India. To prevent the misuse of crypto, a regulatory structure will be in place. The government is concerned about cryptocurrency’s role in ‘hawala’ and terror financing “CNN-News18 reported on Wednesday that sources told them this.