plans for a new bill by the government Bar the most private cryptocurrency Traders and investors said a huge selloff has begun in the country’s digital currency markets, as investors look to exit positions despite losses.
The government will only allow certain cryptocurrencies to promote the underlying technology and its use, according to the legislative agenda for the winter session of parliament that begins this month.
The bill, if passed, would effectively ban Indian citizens from transacting in most cryptocurrencies.
The dollar-denominated stable coin Tether (USDT) fell 25% to around ₹60 on Wednesday following news of the bill, according to cryptocurrency investor Naimish Shanghvi.
Another crypto investor said that the value of his portfolio fell from ₹34,000 to ₹22,000 on Tuesday as a result of a massive sell-off.
“I am looking at selling because the future is so unclear,” the investor said on condition of anonymity.
Cryptocurrency traders said that many exchanges were facing deposit and withdrawal challenges due to the large volume sales.
One of India’s largest cryptocurrency exchanges, WazirX, earlier said on its Twitter account that it was investigating reports that users were facing delays on its app and website. Later he said that the issue has been resolved.
According to industry estimates, there are an estimated 15-20 million cryptocurrency investors in India with total crypto holdings of around ₹400 billion.
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