The bill seeks to prohibit all private cryptocurrencies in India, but will allow certain exceptions to promote the underlying technology of cryptocurrency and its uses, the government said in a notification on Lok Sabha website.
The prices of the world’s biggest crypto asset, bitcoin, crashed to as low of ₹33,50,000 on WazirX from the high of ₹46,35,371 after the news about the bill broke.
Even, tether, which is a stable-coin pegged 1:1 to the US dollar, was trading at a discount of up to 25% in India.
But I don’t think it will do so, and panicking now would be a big mistake,” said Ajeet Khurana, founder of Genezis Network, a think tank for crypto startup investment.
The prices are now expected to consolidate and stay at a discount in the short-term,” said Hitesh Malviya, founder, itsblockchain.com, a blockchain and cryptocurrency publication.
“The industry has been actively communicating with all stakeholders keeping investor protection at the forefront.