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25 Nov, 2021 10:02

Cryptocurrencies crashing in major hub amid looming ban

Cryptocurrencies crashing in major hub amid looming ban

Crypto prices have been plummeting in India since a government proposed bill seeking to ban private virtual currencies sent holders into a panic-selling mode.

The top crypto, bitcoin, dropped 14% on India’s WazirX crypto exchange and was just 0.5% down on Binance, according to Bloomberg statistics. Ethereum sunk 15% while shiba inu coin and dogecoin slid more than 20% on the WazirX, but were relatively unaffected on Binance and Kraken. Tether also plunged on the exchange while remaining steady elsewhere.

“We saw a 15-20% crash in prices once investors engaged in panic selling. However, the market is showing recovery and is at a 3-4% discount currently,” WazirX CEO Nischal Shetty said. “A similar knee-jerk reaction was seen in January, when the contents of the bill were disclosed,” he added.

Cryptocurrency exchange founders on Wednesday assured nervous investors that their assets were secure, claiming the government’s announcement was a positive step which will not just help in structured adoption but will also put a tight check on unregulated crypto markets.

Investors, however, ran into difficulties while trying to transfer funds to different exchanges after purchasing the assets at a lower cost, Bloomberg said. WazirX tweeted on Tuesday it was experiencing trading delays in the app, frustrating users that they could not move their crypto. Several hours later the crypto exchange said the problem was fixed.

The Cryptocurrency and Regulation of Official Digital Currency Bill, which reportedly seeks to safeguard small investors by treating cryptocurrency as a financial asset, is set to be introduced by the Indian government in the upcoming winter session of Parliament. The bill aims to prohibit all private cryptocurrencies except “certain exceptions to promote the underlying technology of cryptocurrency and uses.”

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