China’s decision to declare all cryptocurrencies illegal has led to panic sales among many Indian investors. In a buildup to launch their own cryptocurrency, the Chinese have declared all cryptocurrencies illegal. This can also be seen as an attempt to derail the existing market. Amid this, the big question is ‘Should India have its own official cryptocurrency?’
Transaction volumes spiked approximately 50% at top Indian exchanges in the past two days. In many cases, exchanges dealing in such assets saw a surge to sell smaller crypto currencies. Industry trackers said veteran investors seemed calm, but those who are new to the cryptocurrency reacted to the news from Beijing.
“The largest sell-offs we have seen are in the biggest gainers as investors are likely to cash out their investments in assets like Cardano, Solana, Matic and the like,” said Shivam Thakral, chief executive of BuyUcoin, a cryptocurrency exchange. Industry experts said that while Bitcoin experienced a sell-off, only a small percentage of investors lightened positions.
In a few cases, some investors swift to Bitcoin and Ethereum from smaller crypto assets. At the beginning of the year, most Indians were investing a large quantity of their money in Bitcoin. That had changed as new and new investors entered the cryptocurrency market.
“China has been known to go to extremes with either very assertive statements and prosecutions or complete radio silence.” said by George Zarya, chief executive at digital asset brokerage and exchange Bequant. This time, the point was made very clear, that China will not support cryptocurrency market development as it goes against its policies of tightening up control over capital flow and big tech,” Zarya added. Should we embrace blockchain? Should Quad etc. discuss this technology
“For the institutional crypto industry, it won’t change much as those who could leave have already either closed or gone under the radar. The retail market, most likely, has gone under the radar and will continue to support market volumes,” he added.
China has been the biggest player in Bitcoin mining but the majority of the Chinese Bitcoin mining firms and individuals had moved their operation out of China into crypto-friendly countries. “The Chinese central bank has been lobbying against crypto for a very long time. This recent move wasn’t a surprise to many people as everyone saw it coming,” said Shivam of BuyUcoin. “But we hope China will reconsider its decision and create a healthier environment for crypto enthusiasts moving forward.”