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WazirX crashes after users sell on talk of India crypto ban, CEO asks investors not to panic

WazirX crashes after users sell on talk of India crypto ban, CEO asks investors not to panic

WazirX app witnessed heavy user activity following the government's decision to introduce a new cryptocurrency bill in the Parliament to ban private cryptos.

WazirX was restored after a crash. WazirX was restored after a crash.
Story highlights
  • WazirX has been witnessing heavy traffic since Tuesday evening.
  • The app was restored after a crash due to user activity.
  • WazirX CEO has asked investors not to panic.

WazirX app witnessed heavy user activity following the government's decision to introduce a new cryptocurrency bill in the Parliament to ban private cryptos. A lot of investors took to WazirX and other crypto exchange platforms to sell their investments, resulting in an app crash. Some users even shared the screenshot of the WazirX app on Twitter and complained that they were unable to buy or sell cryptocurrencies on the platform. WazirX has tweeted that the app has been restored since the crash which was caused by heavy user activity after the government's proposed regulation became public.

WazirX CEO Nischal Shetty requested the investors not to panic and show some faith in cryptocurrency. He tweeted that this is not the end but the beginning of crypto regulations in India. He added that the industry was given an opportunity to present while the law makers understand the growing market. Shetty also highlighted that over 1.5 million people have invested in cryptocurrencies in India.

"All of us want regulation. We've been pushing for it from the last 1000+ days. Finally when regulation process has begun, why panic? We need to have faith in our law makers. There'll be discussions & deliberations. Ultimately, innovation will win," he said in a separate tweet.

Earlier, in a statement shared with India Today Tech, Shetty said that the description of the draft bill appears to be the same as in January 2021 and several developments have taken place over the last 12 months that suggest that India may not ban cryptocurrencies. However, he said that investors should respectfully wait to find out more about the draft bill to be tabled in Parliament.

India is one of the biggest cryptocurrency markets in the world. A recent report suggested that the country has more than 10 crore crypto owners, while homegrown crypto exchange platforms have maintained that around 2 crore Indians have invested in cryptocurrencies.

The government on Tuesday released a list of 26 bills that will be presented in Parliament and it includes the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The new bill states that all private cryptocurrencies should be banned in India (with a few exceptions) as the Reserve Bank of India plans to introduce its own digital currency. The description doesn't reveal anything about the possible exceptions.