Price crash after Central Government seek to ban Cryptocurrency

It is understood that the Modi government at the Center will introduce a bill on cryptocurrency in the coming winter session of Parliament, which will regulate transactions in virtual currencies by banning all currencies except a few.

Under the new bill, all private virtual currencies will be banned in India. The news has caused a stir in the cryptocurrency market.

Due to this decision of the Modi Government the Crypto market has fallen by 30%. So far Rs 70,000 crore has been spent on cryptocurrency by 100 million people in India. While this figure is eye-popping and attractive, it is also serious and worrisome.

This move by the government causes Bitcoin to fall down by 29 percent and Ethereum cryptocurrency is down to 27 percent. There is now a provision that no cryptocurrency will accept in India without RBI permission.

The sources said "A regulation mechanism will be placed so that crypto will not be misused, the government is concerned about the underground transitions happening in cryptocurrency. Particularly its a role in 'Hawala' and terror funding".

The sources added, "A strict mechanism will be placed so that law enforcement agencies trace the origin of cryptocurrency used for illegal and anti-national work".

The Modi government at the Center has been holding meetings with cryptocurrency experts and investors for the last few weeks and said that it intends to make the sector more secure and regular.

However, it is believed that the regulation will not be outright banned.

Earlier, Prime Minister Narendra Modi said that all the democratic countries need to work on Cryptocurrencies and ensure that it does not fall into the wrong hands.

The Reserve Bank of India, the Securities, and Exchange Board of India (SEBI) had expressed concern over the irregularity of cryptocurrency transactions in the country.