Regulatory discussions in India effectually a crypto ban caused panic selling on major crypto exchange WazirX, resulting in a massive price drib for leading cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).

Crypto prices in India crashed soon after parliament announced to innovate and list 26 new bills in the Winter Session, which included the Cryptocurrency and Regulation of Official Digital Currency Pecker, 2022. As Cointelegraph reported, the bill seeks a legislative vote on creating an official digital currency while imposing a ban on "all individual cryptocurrencies," starting on Monday.

A mass sell-off on WazirX on Wednesday morning at three:30 am UTC tanked the price of Bitcoin from nearly 4,600,000 Indian rupees ($61,820.73) to iii,917,659 rupees ($52,650.55), a drop of xiv.eight% inside ii hours. Similarly, other popular tokens, including Ether and Cardano (ADA), experienced double-digit price depreciation locally on the commutation.

Bitcoin price crash on WazirX. Source: WazirX

Speaking to Cointelegraph, WazirX CEO Nischal Shetty highlighted that the Indian crypto market place ordinarily trades at a premium compared to the global market:

"This event of panic selling has led the Indian market to correct and the prices to attain the global level."

Shetty also pointed out the various use cases of cryptocurrencies as an asset or utility and quoted former Finance Secretary of India Subhash Chandra Garg's suggestion that "at that place should be a prohibition on the 'currency' use case of crypto," if whatsoever.

Jay Hao, CEO of crypto exchange OKEx, told Cointelegraph about the demand for a nuanced approach toward regulating crypto assets in India:

"India is home to the highest number of crypto owners in the world, and the onus lies on the government to protect the involvement of a large number of crypto investors in the country."

Commenting on India'south crypto ban, BTC Markets CEO Caroline Bowler said, "This ban won't work in the long-term and would be a step backwards," adding that "banning is not an option to protect investor interest." Bowler stated:

"The affair with cryptocurrency is that while governments may try to ban information technology or try to contain information technology, the very decentralized nature of the technology somewhat prohibits that."

Indian blockchain investor Evan Luthra supported Bowler's thought procedure, telling Cointelegraph that it is impossible for governments to limit admission to cryptocurrencies, "by design its impossible to do that." Citing El Salvador'south rapid infrastructure development amid Bitcoin'southward mainstream adoption, the immature entrepreneur believes that the Indian government will exist forced soon enough to accept and deal with cryptocurrencies:

"It happened with the public first, so the banks and now the government will also demand to learn and deal with cryptocurrencies in a future of metaverses."

As a final word of advice to Indian inventors, Shetty believes in the need to have organized religion in our lawmakers. "Let's not panic," he concluded.

Related: Right-fly Indian group calls for stricter crypto regulations

This comes later on a parliamentary panel word on cryptocurrency on Nov. 15 where a plurality of regulators concluded that, although crypto can't be stopped, it should exist regulated more than heavily.

In August, a representative from the Reserve Banking concern of Bharat said that information technology planned to embark preliminary trials for a central bank digital currency before the end of 2022. India is currently one of the largest markets in the world with over twenty million crypto investors.