WazirX restores amid fear of crypto ban

WazirX, an indigenously made crypto-exchange, recently saw a flurry of panic selling by the crypto-enthusiasts amidst fear of blanket ban on cryptocurrency in the country.

The Crash

While there is no blanket ban as of now, the users were still unable to trade in the blockchain run currency through the popular app.

This aggravated a few users who took it to their social media accounts and questioned the WazirX CEO and founder Nishchal Shetty.

Users took to social media platforms to complain of their inability to sell/buy Bitcoin on WazirX and their money getting stuck during the processing. Users also flagged the dropping prices of Bitcoin and Ethereum, on WazirX and various other Indian exchanges as compared to the values going up on global exchanges.

“Can @NischalShetty explain why there is a difference in rates between global Cryptos and the one listed on wazirx platform? It is important u clarify this, investors cannot be left high and dry, this is why GOI is trying to tell people not to invest in private Cryptos.

#WazirX” – Tweeted a user expressing his displeasure.

While other tweets shared the pricing discrepancy between global prices and prices on the exchange.

The Restoration

“Delays in app and web are now fixed.

Thanks for your support 🙏”

-Tweeted the WazirX tweeter handle after the app crash was taken care of.

To explain the price discrepancy, the crypto exchange made a statement.

“We’d like to reiterate that WazirX has an open order book and doesn’t determine or control the price of any crypto on the exchange. There will always be a difference from exchange to exchange, country to country, etc. depending on the demand and supply. For instance, if more people are willing to sell crypto in INR market instead of USDT market, you’ll see slightly lower crypto prices in the INR market. Lastly, we also request all our users to not get afraid and panic sell,” the crypto exchange said in a statement.

Crypto Ban

While the app has been restored, the crypto market is still struggling to resurface.

But what started this mayhem? Did Elon Musk do something again aahh?

Well, not this time. This time the commotion ensued as the Indian Government is bringing a Bill regulating Cryptocurrencies in the country.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 aims to prohibit all private cryptocurrencies, and was listed in the Lok Sabha’s agenda for the winter session, which begins on November 29 and concludes on December 23.

Nishchal Shetty on the bill

Noting that the definition of a private cryptocurrency player is unclear in the present bill, Shetty also observed that the prices of all major cryptocurrencies dropped by almost 10-15 percent overnight in India.

While the definition of a private cryptocurrency player is unclear in the present bill, Shetty told CNBC TV18, “Lawmakers would not want a cryptocurrency which directly competes with the rupee”.

Shetty told BusinessToday.In that currencies like Bitcoin, Ethereum, Dogecoin are public cryptos which work on public blockchain technology; hence it remains to be seen whether the bill incorporates these tokens.

Although the government has proposed banning the private cryptocurrencies with a few exceptions that allows the usage of the underlying technology, industry stakeholders said that they were hopeful that it would not be a blanket ban unlike the last announcement by the finance ministry and wouldn’t include popular digital tokens like Bitcoin, Ethreum etc.

Need for the bill

India’s crypto love

According to statistics from Internet Mobile Association of India, the total assets held by Indians in various cryptocurrencies has grown 2X in 2021 to $2 billion with order volumes spiking exponentially.

In a recent conversation with YourStory’s Daily Dispatch, Nischal Shetty, Founder, WazirX, shared that there has been a boom in the crypto market and the COVID-19 pandemic has been the biggest trigger for the market to take off people took to the online world in swarms.

“We saw a lot of people in India and globally getting into educating themselves around crypto,” he said. Upon understanding the concept, people want to get some exposure, which contributed to the surge in the numbers.

This interest in the unregulated or publicly regulated currency nudged the government to take things in their own hand and regulate cryptocurrencies which are being traded on the market today.

untraceability

Cryptocurrency is also used by smugglers and black-marketeers as it is untraceable, which increases the burden of the state in apprehending the culprits.

Too Volatile

We have all heard stories of someone losing a lot or gaining a lot on crypto exchanges, this happens due to the volatility of the currency. While the government has no issues if someone makes a lot of money, it is morally obligated to make sure no one loses their fortune in one day.

All the aforementioned factors must have pushed the government to finally acknowledge and bring a bill governing cryptocurrencies and exchanges of India.