The coin linked to the Ethereum blockchain network, Ethereum, dropped nearly 57 per cent to $1,850, its lowest level since late January.
With crypto prices recently seeing a substantial pullback, the Reserve Bank of India also clarified on 31st May 2021 that bankers cannot cite the Supreme Court order of 2018 to warn users for trading in cryptocurrency, as RBI has not issued any guidance since 2018.
Additionally, China’s announcement on banning financial institutions and payment companies from providing services related to cryptocurrency transactions also aggravated the fall in the market.
Industry experts say, as an asset class cryptocurrency is here to stay and the outlook is positive.
He further adds, “Investors are advised to invest a smaller percentage and this should also be a part of the basket of investments.
Although cryptocurrency is not illegal in India, it still is not regulated – which in turns has created a lot of confusion, as there is no governing body to regulate it and the possibility of frauds and scams becomes rampant.
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