Cryptocurrency prices crashed on Tuesday evening, 23 November, following news that the Union government is slated to move a bill in the winter session of the Parliament that seeks to prohibit all private cryptocurrencies in India. The winter session starts on 29 November.
According to NDTV, Bitcoin fell over 17 percent, Ethereum fell by nearly 15 percent, while Tether was down by almost 18 percent.
Reacting to the crypto market crash, WazirX founder Nischal Shetty told CNBCTV18 that a "lot of panic selling ensued overnight".
Meanwhile, the WazirX app itself crashed after witnessing heavy user traffic, as investors began to sell their investments, reported India Today. It was later restored.
The bill seeks to make “a facilitative framework for creation of official digital currency to be issued by RBI.”
The bill will prohibit all private cryptocurrencies in the country but will allow for certain exceptions to promote the underlying technology of cryptocurrency and its usage, reported IANS.
It has been listed for introduction, consideration, and passing in the Lok Sabha and is among the 26 new bills that are to be introduced in the Parliament's winter session.
Centre's Stance on Crypto
Prime Minister Narendra Modi had earlier said that all democratic countries need to work together on cryptocurrency and ensure that it does not end up in the wrong hands.
Giving an example of the virtual currency, he had said, "Take cryptocurrency or Bitcoin for example. It is important that all nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth."
Several high level meetings have been held to discuss the regulation of cryptocurrencies. The Parliamentary Standing Committee had also called for regulation.
(With inputs from NDTV, CNBCTV-18, India Today, and IANS.)