Monday, December 6

India’s cryptocurrency market plummets at risk of ban


The cryptomarket has been in a correction over the past few days that has many people worried and even dismayed that Bitcoin will reach new highs as early as 2021, however the Indian cryptomarket appears to be being hit even more severely by regulatory concerns in the world. parents.

The price of cryptocurrencies at Indian brokerages has plummeted by as much as 25% in recent days. The main reason for this big drop is a widespread fear of investors and companies with a possible ban that started yesterday in the country.

The government of India has added to the agenda of the next winter session of Parliament a law that, by all indications, will “ban private cryptocurrencies”.

Cryptocurrencies crash in India

Most of the confusion and chaos generated comes precisely from the complicated and rather vague definition of “private cryptocurrencies” and what it really means.

“Cryptocurrencies are being traded at 20% to 30% discounts because of all the chaos that has been created by the government. The country’s current administration should have acted more responsibly in defining what a private cryptocurrency means, as they first mentioned the term in February,” said hitesh malviya, founder of itsblockchain.com.

In a superficial analysis of the term, what suggests is that the country wants to ban all cryptocurrencies that have any kind of private development and this could include currencies like the Ethereum or XRP, which have a company or institution behind them.

Bitcoin?

However, the law can also refer to Bitcoin… The truth is that, by all indications, the government wants to create an umbrella term to be able to include any cryptocurrency that it wants to ban under the pretext of a private cryptocurrency.

At the same time, he guarantees that he will have no problems in the future when developing a Central Bank Digital Currency (CBDC) if he wants to, after all, it will be something state-owned, not private.

This confusion is certainly causing prices to plummet at brokers and this could have an effect that could have an impact on the global cryptomarket, but certainly with much less impact than what happened in China.





livecoins.com.br

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