Amidst the impending ban on cryptocurrency owing to a proposed bill, the Indian crypto investors continue investing in the asset.
The largest Indian crypto exchange, WazirX, claimed that the trading value hit the billion-dollar mark in eleven days this month. As opposed to this it took 25-30 days last month to hit the billion-dollar mark. It is expected that the total trading value of $1.84 billion in January will multiply by 2.5 this month.
WazirX’s founder, Nischal Shetty described crypto as a global phenomenon. He explained that when Tesla spent $1.5 billion on Bitcoin, it had an impact on the wealth in India and it increased. While investments in any asset don’t have a global impact, investment in crypto sure does. No matter where in world, investment in crypto results in a world-over impact on wealth. Similarly, in India, the positive news about Bitcoin internationally has encouraged the Indian people to invest in it amidst a plausible ban.
He added that the only time there was negativity surrounding crypto was when the crypto bill was displayed on the Parliament’s website. He explained that there was panic selling for a couple of days. However, in the next few days, the activities and prices reverted to normal.
The draft law has got its share of criticism. The cryptocurrency market has been uneasy since the inception of the proposed law as it bans the asset. The bill aimed at banning all private cryptocurrencies in the country. Additionally, introducing a framework for the digital Indian rupee that is to be issued and controlled by the Reserve Bank of India. The bill doesn’t clearly define private cryptocurrencies but speculations suggest that Bitcoin and similar assets might be declared illegal.
Another Indian crypto exchange namely CoinDCX, also stated that this month saw no drop in the crypto trading volumes. The exchange’s co-founder added that there was a continued rise in interest owing to the latest developments in the international market.
Following Tesla’s statement about its investment in Bitcoin, came Mastercard’s announcement of supporting crypto assets on its network. Similarly, Visa also showed its interest and announced that it would help banks roll out crypto funds. Additionally, the crypto market gained a lot of popularity amongst celebrities who went on to endorsing and promoting it. Accordingly, such developments had a huge impact on the crypto market globally and the effects were also seen in India.
Indian Crypto exchanges launched a campaign to persuade the government to reconsider the crypto bill, showing support for the asset in India.
Some reports also suggest that the proposed law might allow holders of cryptocurrency to exit before the expected ban. However, a heavy fine may be imposed on its conversion to a legal asset.
The proposed bill, Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is expected to be tabled in the ongoing budget session. While it seeks to impose a ban on private cryptocurrency, it nonetheless essentially aims to promote the technology of cryptocurrency and its uses.