Indian Crypto Investors Press the Sell Button

Indian holders of cryptocurrency went into panic-selling mode on Tuesday, flooding the exchanges at midnight after being spooked by the wording of a government release that implied a ban on all private virtual coin. Prices of the most-valued cryptocurrencies such as Bitcoin and Ethereum fell as much as 15%. Crypto exchanges took to calming investors, urging them not to rush into selling.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which will be introduced in the next session of Parliament “seeks to prohibit all private cryptocurrencies in India” but allows for” certain exceptions to promote the underlying technology and its uses”, according to the Lok Sabha bulletin issued Tuesday evening.

This sparked fear as the description was the same as that used earlier this year when talks of a ban first emerged. Crypto industry executives said the panic was premature, based on discussions exchanges they have had with the government and regulators in the past few months.

Since Tuesday, the value of these coins have recovered to degree on top exchanges including Coin DCX, WazirX, and crypto exchange aggregator Coin Switch Kuber.

“As of now, I urge all crypto asset investors in the country to remain calm, do their own research before arriving at a rushed conclusion,” Coin Switch Kuber founder and CEO Ashish Singhal tweeted. S-ET

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