Cryptocurrency unicorn CoinDCX CEO and co-founder, Sumit Gupta, has said that the panic selling among crypto investors in the country led to a downturn in only India after the news of the proposed ban on private cryptocurrencies, while crypto prices in global markets remained unaffected.
“Crypto prices are caused due to market demands and are not based upon geographies as they are inherently decentralised and distributed. Due to this news, we are witnessing significant discounts only in the Indian markets. Global markets remain unaffected,” the CoinDCX CEO said.
Gupta cautioned investors to take an informed decision in higher volatile times like these. “I strongly believe that due to this news, the average investor is in a state of panic and is, unfortunately, selling out their losses. As iterated above, I strongly recommend everyone to do research and then make a decision, in times of higher volatility like these. From our end, I assure you we will continue our commitment to the safety of your funds and guide you towards the best possible solutions,” he said.
Like his industry peers, the CoinDCX chief said that the industry is hopeful towards a positive regulation in the future gauged by the discussions that took place between the stakeholders and the government over the past several months.
“This news of regulation comes as welcome news. However, what remains to be seen is that nobody has yet seen the bill or its contents. If we go by recent statements and our belief in the system, things are going to turn positive as against certain narratives going on right now,” Gupta said.
Crypto exchange Zebpay’s co-CEO, Avinash Shekhar, said that they are awaiting further details on the bill that is going to be presented in the winter session of the Parliament.” There have been many positive steps taken by the government to learn and understand crypto and its impact on all stakeholders -- investors, exchanges, and policymakers. So, we’re looking forward to a crypto bill that takes into consideration all the inputs from those discussions,” Shekhar added.
According to industry estimates, the cryptocurrency trading volumes have risen exponentially since the onset of the pandemic with $3-4 billion assets involved in crypto trading.
“The industry is hopeful for a positive outcome, however, a negative policy will create a massive brain drain, as there are multiple Indian entrepreneurs who are building in Web3 and even the number of users are increasing by the day. The end goal of policymaking is to protect and I feel banning is not the answer. Crypto is a decentralised ecosystem that cannot be banned only driven underground and it has the potential to benefit the economy in the long run.
Countries like Nigeria banned cryptocurrency but now we see that it has now become one of the largest countries with P2P trading. The government shouldn't discourage crypto, instead it should encourage the innovation it brings,” Vikas Ahuja, Member of Blockchain and Crypto Assets Council (BACC) and CEO of CrossTower India, said.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today