Crypto prices crash after Indian government seeks ban on private cryptocurrencies in new bill

Cryptocurrency market has crashed on Tuesday with the news of India seeking to ban most private cryptocurrencies, when it introduces a new bill in the winter session of the parliament to regulate virtual currencies.

Reports suggest the Indian government will allow only certain cryptocurrencies to promote the undelying technology and its uses.

India is also seeking to make a framework for an official digital currency that will be issued by the Reserve Bank of India, which it looks to launch by December.

Estimate suggests there are 15 million to 20 million crypto investors in India, with total holdings of around 400 billion rupees.

A day after the government told of introducing a bill that would ban private cryptocurrencies, the crypto industry in the country on Wednesday urged the government to take a nuanced approach towards bringing in a regulation, PTI has reported.

Moreover, the cryptocurrency industry also urged the investors in the country to remain calm and not arrive at a rushed conclusion.

Now there is no ban or regulation on the use of cryptocurrencies in the country. Earlier this month prime minister Narendra Modi had held a meeting with senior officials on cryptocurrencies and the way forward. Going by reports strong regulation measures may be put in place.