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Crypto prices crash on fear Indian government may ban private crypto

Crypto prices crash on fear Indian government may ban private crypto

Crypto prices crash on fear Indian government may ban private crypto
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By CNBCTV18.com Nov 24, 2021 12:31:07 PM IST (Published)

Cryptocurrency prices in India crashed early on Wednesday after a government bulletin listed the introduction of a new cryptocurrency regulation bill in the upcoming winter session of the parliament that seeks to prohibit all private cryptocurrencies in India. The prices, however, recovered later.

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Bitcoin prices crashed as much as 26 percent to roughly Rs 33,50,000 lakh on the Indian exchange before recovering. Ether also lost over 20 percent to roughly $3,622 or Rs 2.6 lakh. At 11.17 am, Bitcoin was at Rs 39,49,501, down 14 percent. The last close of the legacy coin was Rs 46,35,000.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to "..seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses," a bulletin listing the legislative business posted on Lok Sabha.
The bill aims to create a framework for a digital currency, the bulletin read.
The ban on private crypto comes fresh off the heels of the parliamentary panel on cryptocurrencies that happened on November 16. The panel, led by Jayant Sinha and consisted of representatives from various crypto exchanges and the blockchain and crypto-asset council (BACC), had reportedly arrived at a consensus that crypto need not be banned but should be regulated.
As of now, the details of the bill are unclear. The meaning of a private cryptocurrency is not defined, and government sources have told The Times of India that the bill is not finalized. It is unlikely to be introduced during the first week of the winter session.
The bill also does not define what a private cryptocurrency is. It does not tell us whether cryptos like bitcoin and ether on a public blockchain are considered private cryptocurrencies.
The regulation is a welcome sight for market experts who have been demanding effective regulation for a while.
Nischal Shetty, Founder and CEO of WazirX in a tweet said, "All of us want regulation. We’ve been pushing for it for the last 1000+ days. Finally when the regulation process has begun, why panic? We need to have faith in our lawmakers. There’ll be discussions & deliberations."
The RBI had also voiced its concerns in the past. RBI Governor Shaktikanta Das has said, "Cryptocurrencies are a very serious concern, and we have concerns from a macroeconomic and financial stability point of view. RBI has given detailed suggestions to the government, and the matter is under active consideration of the government"
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