There’s massive selling on India crypto exchanges earlier today as reports about India banning private cryptocurrencies emergs.
Currently, The India government is preparing to discuss
‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ next week on November 29.
More so, some local India media houses report that the government will ban private cryptocurrencies. Then, this triggers an overnight panic selling.
Notably, Prices of Bitcoin (BTC) and several other top altcoins are seeing over 20% sell off. Particularly, in an overnight crash on exchanges in India such as WazirX.
However, there’s just a little impact on the global market as the crypto price on Coinmarketcap remains relatively stable.
Furthermore, the panic in India is in control after some sources familiar with the matter explain to the local news publication News18. Stating that the regulation is not an outright ban.
So, The sources explain.
“A regulation mechanism will be in place so that crypto is not misused…”
“The government is concerned about the underground transactions happening against cryptocurrency…”
“— particularly its role in ‘hawala’ and terror funding”.
Additionally, The sources explain that digital assets is not to be seen as currencies.
“A strict mechanism will be in place so that law enforcement agencies can trace the origin of…”
“cryptocurrency used for illegal or anti-national work,”
India Government Still Uncertain
As of now, the India government is uncertain with the acceptance of digital assets in the country’s legal financial system.
However, Prime Minister Narendra Modi recently confirm that the government will take a pattern approach with digital assets.
Lastly, The government wants to accept cryptocurrencies as an asset class. Though, will yet to allow them as a medium of payments or settlements.
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