Bitcoin Plunges 17% in Indian Crypto Exchanges on Likely Law Banning Private Tokens

The value of cryptocurrencies on Indian exchanges plummeted as news surfaced that the government is preparing a law that would prohibit the use of most privately held tokens. In terms of rupees, Bitcoin declined as much as 17 percent, Ethereum lost 14 percent, Dogecoin plunged more than 20 percent, and Polkadot sank as much as 14 percent. Even the dollar-pegged cryptocurrency Tether was down roughly 17 percent, according to statistics accessible at WazirX.

In the meanwhile, “we’re waiting for further information on the bill that will be introduced at the winter session of the Parliament,” said Avinash Shekhar, Co-CEO of ZebPay. “Numerous constructive initiatives have been launched on behalf of the government to better educate and comprehend cryptocurrencies, as well as their influence on all parties involved, including investors, exchanges, and regulators. We’re looking forward to a cryptocurrency law that takes into account all of the comments from those meetings.”

As previously reported by the Indian Government, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 aims to outlaw all private cryptocurrencies in the country, according to a government bulletin. However, some exclusions are permitted in order to promote the underlying technology of cryptocurrency and its applications.

“This is a watershed event in the history of India. Starting with the imposition of a banking prohibition in 2018, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was introduced in the Parliament’s winter session. Our country has gone a long way in the last three years! It says volumes about India’s will to dominate the web 3.0 age,” stated Nischal Shetty, Founder of WazirX, who expressed his optimism.

Prices on the foreign market were generally steady throughout the year. Cryptocurrency exchange CoinMarketCap said that Bitcoin and XRP both declined by one percent apiece, with Cardano falling by seven percent. Other popular cryptocurrencies, such as Binance Coin, Ethereum, and Polkadot, were seeing increases in price.

When compared to the previous day, the worldwide cryptocurrency market capitalization fell by 0.36 percent to $2.56 trillion. The overall crypto market volume, on the other hand, increased by around 9% to $126.32 billion.