The Indian government’s plans for a new bill that would ban most private cryptocurrencies have caused heavy selling in the country’s digital currency market, as investors look to find ways exit positions despite losses, traders and investors said.
The government will only allow certain cryptocurrencies to promote the underlying technology and its use, according to a legislative program announced late Tuesday for the winter session of Parliament that will begin. beginning this month.
The bill, if passed, would ban citizens in India from trading in most cryptocurrencies.
According to Naimish Sanghvi, a crypto investor, the dollar-linked stablecoin (USDT) fell 25% to nearly 60 rupees ($0.8061) on Wednesday following news of the this bill, according to Naimish Sanghvi, a crypto investor.
A second crypto investor said his portfolio value has dropped to around Rs 22,000 from Rs 34,000 on Tuesday as a result of heavy selling.
“I’m thinking of selling because the future is not very clear,” said the investor, who asked to remain anonymous, as sensitive information.
Cryptocurrency traders say some exchanges have faced deposit and withdrawal challenges due to high selling volumes.
WazirX, one of India’s largest cryptocurrency exchanges, previously said on its official Twitter account that it is investigating reports that users are facing delays on the app. apps and their website. It then says the problem is resolved.
There are an estimated 15 million to 20 million crypto investors in India, with a total crypto holdings of around Rs 400 billion, according to industry estimates. There is no official data on crypto holdings and user base.
