The crypto market is undergoing a very chaotic stage in India. With the upcoming crypto bill that is said to propose a ban on all private cryptocurrencies, investors have gone into a state of panic.
Most crypto currents saw a major dip in the last two days, due to the news surrounding their ban. However, it is quite unlikely that the government will go for an outright ban.
What led to Panic Selling By Investors On 23rd November?
On Tuesday, 23rd of November the Government issued a parliamentary notice stating that it is ready with the much-awaited Cryptocurrency bill and will be passing it in the Winter session of the parliament.
What followed was a wave of panic selling by the investors as they assumed that the government will most likely ban private cryptocurrencies as is suggested by RBI. This led to a major crash on most Indian crypto exchanges.
However there is one important thing that the investors missed, there is no official statement about how exactly do the government plan to ban private cryptocurrencies and more importantly what exactly do they mean by “private cryptocurrencies”
It is portable to note that popular cryptocurrencies like Bitcoin and Etgereum are considered public cryptocurrencies as their transactions are traceable, unlike private cryptocurrencies.
If you are to believe experts, such a ban is highly unlikely. Avinash Shekhar, the co-CEO of Zebpay, one of India’s leading crypto exchanges pointed out that while the government will focus on sticker regulations on crypto as it for snot want crypto to attain the status of fiat currency in the country, it will not be outright banning cryptocurrencies.
Hitesh Malviya, founder, itsblockchain.com, blamed different interpretations about the “definition of private cryptocurrencies by media and influencers ‘ for the panic witnessed yesterday on Indian crypto exchanges.
While also stating that the ruling government should be more responsible in demarcating what exactly is “private cryptocurrency”
Conclusion
The upcoming cryptocurrency has become a sword hanging over the head of the future of virtual currencies in South Asia’s largest economy.
What is left to see is how the government and the investors tackle the upcoming developments with the bill and how this bill is set to transform the crypto market for the Indian population.
Stay tuned for more such crypto-related news.
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