WazirX crashes after users rush to sell cryptos; app CEO asks 'to have faith in lawmakers'

WazirX app crashed due to high user activity after it was reported that the government would introduce a new cryptocurrency bill in Parliament, resulting in the ban of private cryptos. Following the news, a chunk of investors decided to sell their investments through the WazirX app, resulting in the app to be crashed. The users complained through Twitter and said that they were unable to either buy or sell their currencies. WazirX announced later that the app has been successfully restored after the crash caused by the increase in user activity.

WazirX CEO Nischal Shetty has asked the users to calm and to show some faith in cryptocurrency. He tweeted that this is the beginning of crypto regulations in India and that the industry was given an opportunity to present while the lawmakers understand the growing market. Shetty also pointed that at least 1.5 million people have invested in cryptocurrencies in India. He said, "All of us want regulation. We have been pushing for it for the last 1000+ days. Finally, when the regulation process has begun, why panic? We need to have faith in our lawmakers. There will be discussions & deliberations. Ultimately, innovation will win.”

As per several experts, the details of the draft bill are almost the same as the one that surfaced in January 2021 and after several incidences, the crypto companies are confident that the Indian government will not ban cryptos but the industry might become heavily regulated. The investors are asking for patience as more details will soon follow after the cabinet meeting comes to an end. India is one of the biggest investors in the cryptocurrency markets and the large influx of cryptos in recent months has forced the government to take some action and become involved in the industry, which was predominantly unregulated till now. There are more than 10 crore people in the country who own cryptocurrencies and at least 2 crores of them have invested in homegrown cryptos.

The government’s bill regarding cryptos

The government released a list of 26 bills on Tuesday and these will be presented in Parliament. One of the 26 bills was the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The new bill proposes that the state bans all the private cryptocurrencies in India as the Reserve Bank of India plans to introduce its own digital currency.

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