Since its inception, the digital currency market has developed from being another innovation welcoming interest to a volatile and unpredictable market. It has since turned into a heavily discussed phenomenon that gets away from no personalities. Albeit the crypto world has been to a great extent disregarded by government controllers, the tables have now turned. The ascent of crypto reception all around the world posits a precarious contest to the conventional monetary framework. It is changing the worldwide money scene. This has acquired the consideration of the controllers and lawmakers as they are leveling up the crypto regulations.
Indian Crypto Price Tempest
The Indian crypto market is experiencing a tempestuous fall in cryptocurrency prices at present. Bitcoin dropped 17%, Ethereum fell 15%, Dogecoin dropped by 20%, and Polkadot dropped 14% as per the latest market data analysis. The dollar-pegged crypto token Tether took a hit as well, falling by 18% as of yesterday. This sudden price-drop ensued following the latest crypto regulations and bans implemented by the Indian government.
Bitcoin dipped by 25.51% on November 24th, 2021 trading at a reduced rate of $46,601 which is roughly 34 lakh in INR on various Indian exchanges. Unlike the global crypto space where Bitcoin maintained the $50,000 dollar mark, the Indian crypto scenario fell through. The world’s oldest cryptocurrency, Bitcoin has plunged to such a market price for the first time since breaking through the record high ceiling of the $68,327.99 mark on November 9th, 2021.
Cryptocurrency and Regulation of Official Digital Currency Bill
Indian government officials and policymakers have taken many proactive steps to gain a better understanding of crypto and how it impacts investors, stakeholders, and crypto exchanges. The latest crypto bill from the Lok Sabha seeks to ban most privately backed cryptocurrencies in the country. The Cryptocurrency and Regulation of Official Digital Currency Bill of 2021 only give leeway for the underlying technology behind cryptocurrencies allowing it to be utilized across industries. According to reports, the government is planning to introduce the bill to ban most private tokens, which has already caused crypto counters in Indian crypto exchanges to plunge sharply. The market capitalization of the global crypto market saw a price drop of 0.36% of the 2.56 trillion dollar mark.
The Lok Sabha Bulletin reads, “The stated intent of the Bill is to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India”. Some exceptions are allowed for crypto coin usage and the underlying blockchain technology is to be promoted.
What is seen as a ban on cryptocurrencies might not be just that. Indian government sources believe India won’t shut its doors fully to digital currencies and will not take a strident stance against cryptocurrencies like China. A few amendments are likely to be made to the latest Crypto Bill. Regulating crypto would help curb corrupt practices, and there is likely to be some changes to the bill to keep it in check. It is expected that this bill will be amended to keep a check on corrupt practices after receiving input requests from the crypto stakeholders.