With the introduction of a bill regarding cryptocurrency in the upcoming winter season in Lok Sabha, there was chaos in the Indian crypto market and overnight frenzy-selling of the cryptos in the market, said Nischal Shetty, founder of WazirX.
The winter session of the Lok Sabha, starting on November 29 and concluding on December 23, will revolve around the passing of The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, aiming to ban a list of all private cryptocurrencies.
As of now, there is ambiguity in the definition of a private cryptocurrency. However, Nischal Shetty told CNBC TV18 that lawmakers do not want cryptocurrency competing with the rupee.
From his observation, Nischal Shetty further continued a major drop of 10-15 percent overnight in India of all major cryptocurrencies. Bitcoin plunged to 9.88%, to Rs.40,80,590, Ethereum dropped close to 7%, to Rs.3,07,500, Tether declined 11.73%, to Rs.71 and Solana declined by roughly 10%, to Rs 15,750.
Shetty said that generally, the trades are carried out in the Indian crypto market at a premium of 7-8% by popular demand. Currently, the trades carried out are 5% discount compared to peers globally.
Nischal Shetty’s comment comes during the debate over the cryptocurrency regulation in the country as the ever-increasing number of crypto enthusiasts has seen in the past year. WazirX exchange alone has seen a lot of investor inflow, particularly in the last six to eight months, crossing the 10 million mark this year.