- Cryptocurrency exchanges are seeing a decrease in new signups in India as more people fear a ban on virtual money.
- When word got out that the government was about to introduce a new cryptocurrency bill in Parliament, crypto values on Indian platforms plummeted. Since last week, cryptocurrency prices in India have stayed low.
- According to news reports, local costs have dropped by around 15% compared to overseas markets.
There has been a drop in new cryptocurrency exchange signups, as potential investors appear to be hedging their bets until regulatory clarification on the asset class develops.
A matrix is used to appraise crypto firms based on new user signups.
After the government decided to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, investors have become apprehensive in the upcoming Winter session of Parliament.
Before the Winter Session of the Parliament, the Union administration listed a bill that would outlaw most private cryptocurrencies, causing their local prices to plummet as selling intensified.
The Union government plans to regulate virtual currencies and create a framework for the official digital currency that the Reserve Bank of India will issue through the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
While the bill’s exact contents are unknown, the initial description suggests that the government intends to ban private cryptocurrencies and allow the Reserve Bank of India (RBI) to issue its digital currency.
According to reports, cryptocurrency investors wait for regulatory certainty before resuming full-fledged trading of virtual coin assets.
According to the legislative agenda for the Winter Session, which begins November 29, only specific cryptocurrencies will be allowed to promote the underlying technology and its applications.
The measure aims to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”.
According to Shivam Thakral, CEO of BuyUCoin, the company has observed a 20% decline in new signups on a week-to-week, creating an average daily sign-in rate of 8,000-10,000 per day during the recent bull cycle.”
BloombergQuint reports that cryptocurrency technology is lying on local exchanges, resulting in a greater drop in rupee values than abroad markets.
New sign-ins have also decreased on other vital exchanges. Smaller exchanges, meanwhile, reported steady signups as individuals remained concerned and intrigued about the new asset class as concerns about harsher restrictions for the sector grew.
However, according to several industry watchers who talked with the publication, transaction volumes have grown in recent days as investors race to sell bitcoin holdings. According to the report, panicked investors have already sold their interests, and the situation is expected to remain stable as more facts about the law become available.