The prices of some cryptocurrencies, like bitcoin or ethereum, they collapsed sharply in India following the reports. According to the latter, the government is planning to introduce a bill banning the use of most private cryptocurrencies.
The prices of several major cryptocurrencies, including bitcoin, ethereum and dogecoin, have fallen by around 15-20%. According to the Cryptocurrency Bill and the Official Digital Currency Act Regulation, mining, holding, selling, issuing, transferring or using cryptocurrency in India is punishable by a fine or imprisonment up to 10 years, or both.
The bill, unveiled on Tuesday, allows the use of processes or technologies behind any cryptocurrency for experiments, research or teaching. India is also looking to develop the country’s official digital currency. The bill recognizes that virtual tokens have benefits such as better record keeping and more efficient cross-border payments. However, it also raises concerns about the potential use of cryptocurrencies for money laundering, the risks to consumers and the threat to the country’s finances.
Bitcoin, Ethereum and dogecoin, a sudden price collapse that is more unique than rare
Currently, there are no regulations in India on the use of cryptocurrencies. With the new bill, the government is considering banning “all private cryptocurrencies,” albeit with some unclear exceptions. The national cryptocurrency trading app WazirX witnessed strong user activity, which led to his arrest.
Several WazirX users, in an attempt to sell their investments, complained that they were unable to buy or sell. cryptocurrencies on the platform. WazirX CEO Nischal Shetty asked investors not to panic and show confidence in cryptocurrencies. “This is not the end but the beginning of cryptocurrency regulations in India.”
“Over 15 million people own cryptocurrencies in India. The collapse of the internal market, however, it did not affect the global cryptocurrency market. After these deliberations, sources close to the government also indicated that the government is trying to regulate cryptocurrencies by discouraging trade and imposing heavy taxes rather than outright bans on virtual tokens. Prime Minister Narendra Ways he also recently chaired a high-level meeting on the use of cryptocurrencies.