The Indian government has recently taken some important decisions regarding crypto, and a proposed bill suggests that there will be heavy regulation in the country. Naturally, it has been a cause of concern for the millions of crypto investors in the country. India has many homegrown cryptocurrency exchanges which have seen considerable success over the few years. Some of these exchanges got the Unicorn status in a short time due to heavy funding from big corporates. Over the past few months, there have been many concerns regarding cryptocurrency’s legal status in India. The government also hinted at regulation on cryptocurrency trading, which meant that it would not be banned in the country. However, recent reports of a ban on ‘private cryptocurrencies’ have led cryptocurrency prices to fall.
The hardest hit was seen in Bitcoin, the price of which reduced by more than 14% in less than two hours. WazirX, a leading cryptocurrency exchange in India, saw a massive sell-off that led to this price drop. Apart from Bitcoin, many tokens such as Cardano and Ether saw a significant drop in prices, much of it sparked by the Indian government’s recent declaration.
The fall of prices indicates something greater than the immediate panic selling and fear. It shows that any decision the Indian government takes with respect to cryptocurrencies will have a great effect on the world. While Bitcoin recovered from the losses it suffered to the China ban, it is not clear how things would work out in case India also bans cryptocurrencies.