• The panic in the population as a result of a project that seeks to strictly regulate cryptocurrencies in India caused the crypto market to have a 25% drop.
  • Parliament ruled that cryptocurrencies could not be stopped and therefore must be regulated.

Yesterday in India was not a normal day. While worldwide cryptocurrencies were showing a recovery, in the most populous country in the world cryptocurrencies fell by -25% in a matter of minutes.Why? What happened in India?

Panic has reigned again in the cryptocurrency ecosystem of India, and it is that The discussion in the Congress of the nation of the Bill on Cryptocurrencies was announced on November 29.

As expressed in the local mediaThe creation of India’s national cryptocurrency (CBDC) will be discussed in this debate. So far so good, however, it leaked that in addition The project would seek to prohibit the use of a large number of cryptocurrencies and tokens, while the rest will be included in a system to regulate each and every transaction in India.

“The SC Garg Committee concluded that cryptocurrencies cannot serve the purpose of a fiat currency because private cryptocurrencies are inconsistent with the essential functions of money / currency.”, It reads in local media.

This decision by the congress and the Indian government came after Parliament in the session of last November 15 came to the conclusion that cryptocurrencies could not be stopped and that therefore they should be regulated.

These concerns of parliamentarians have been aligned with that of the Central Bank of India (RBI), which since 2017 has tried to prohibit both banks and financial institutions from having any kind of business with crypto firms. However, both the current government and the Supreme Court annulled this circular this year.

Read:  Three people remain missing after the collapse

But, according to what has been observed, it can be seen that now cryptocurrencies have a new factor against them. Leaving the Executive and the Supreme Court confronted, for the use of crypto, with the Congress and the Central Bank, totally prohibitive.

Cryptocurrency prices crash

This information immediately triggered a massive sale of cryptocurrencies that thousands of users owned on multiple local exchanges. Which led most exchanges to cancel withdrawal processes from their platforms.

Source: Reddit

It can be seen that, in critical exchanges such as WazirX or CoinSwitch Kuber, the price of BTC reached $ 46,000, which in turn resulted in users who could not withdraw their cryptocurrencies and presented losses in their portfolios.

WazirX CEO Nischal Shetty asked investors not to panic and show some faith in cryptocurrencies.

“TWe all want regulation. We’ve been pushing it since the last 1000 days. Finally, when the regulatory process has begun, why panic? We need to have faith in our legislators. There will be discussions and deliberations. In the end, innovation will win ”, he said in another tweet.

It might interest you: