On Tuesday night, Indian cryptocurrency investors panicked because of the new cryptocurrency bill. The bill is likely to ban all private currencies listed for consideration at the winter meeting of parliament. Crypto regulating bill will be submitted to parliament during the winter meeting starting on November 29.
The 2021 Cryptocurrency and Official Digital Currency Regulations are a framework rule for cryptocurrencies. It aims to prohibit private coins and, at the same time, provide a framework for the creation of an official digital currency issued by the Reserve Bank of India. The description is the same as earlier this year. This indicates that the cryptocurrencies may be banned entirely. These news caused new investors to sell off on top exchanges.
The bill had a huge impact on crypto prices
After the news, the prices of Bitcoin and Ethereum plummeted and have since rebounded.
A few hours after the government announced cryptocurrency bill news, all cryptocurrency prices plummeted by 15% or more.
Bitcoin has fallen by approximately 17%, Ethereum has fallen by 15%, and Tether has fallen by nearly 18%.
However, sources in the crypto industry said that based on discussions between exchanges and governments, and regulators, investors’ panic is premature, indicating that a total ban on cryptocurrencies is unlikely.
In 2018 most blockchain and crypto communities fled the country. That came after the Reserve Bank of India banned banks from supporting crypto transactions.
Earlier this month, Indian Prime Minister Narendra Modi and officials from the Reserve Bank of India, the Ministry of Finance, and the Securities and Exchange Commission of India (Sebi) hosted a high-level cryptocurrency meeting.
Subsequently, the Parliamentary Standing Committee on Finance met with representatives of the crypto industry, stakeholders and experts. Panel chair Jayant Sinha told ET that the committee has no opinion on cryptocurrencies. The industry claims to have 15 million registered users and a total investment of 6 billion rupees.
Concerns about the growing popularity of cryptocurrency as an investment are growing.
Bitcoin and other cryptos fell sharply today
After India announced the private encryption ban bill, Bitcoin prices suffered some weakness today. Since mid-October, prices fell to their lowest point as market observers cited several factors that could trigger these declines.
Among cryptocurrencies, today’s Bitcoin price is slightly lower, below the $57,000 mark. The world’s largest and most popular cryptocurrency transaction price is 56,671 USD. Bitcoin recently hit an all-time high of approximately $69,000 and has risen by more than 98% this year.
Tokens related to the Ethereum blockchain and the second-largest cryptocurrency, Ether, rose more than 3% to US$4,270. The price of Ether has been trading near its all-time high. It caught up with Bitcoin’s rebound. It was affected by news of the broader adoption of blockchain.
Dogecoin prices rose nearly 2% to $0.22, while Shiba Inu fell more than 7% to $0.000041. The performance of other cryptocurrencies such as Litecoin, XRP, Polkadot, Uniswap, Stellar, Cardano, Solana, etc., has also been mixed in the past 24 hours.
US agencies launch a “crypto sprint” agenda, focusing on crypto assets’ supervision
Meanwhile, the US financial regulator released an inter-agency policy agenda for regulating cryptocurrencies on Tuesday. The agenda will discuss how to provide oversight for a booming market.
The official so-called “crypto sprint” outlines a to-do list for 2022, which will provide crypto players with more transparent road rules.
It summarizes the plans developed by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). These plans will judge whether the activities of banks in cryptocurrencies are legal and how financial participants should comply with current regulations regarding safety and soundness and consumer protection involving crypto.
What exact responsibilities will these regulators have?
Regulators will supervise how banks securely store encrypted assets, handle the conversion of customers’ fiat currencies into cryptocurrencies, and provide cryptocurrency purchase services. The roadmap also includes settlement and execution of transactions, loans backed by crypto assets, issuance of stable coins, tax services, and whether to hold crypto assets on the balance sheet.
These institutions will also assess banks’ capital and liquidity requirements holding crypto assets and point out that they will continue to negotiate with the Basel Committee on Banking Supervision on capital requirements.
The Basel Committee is part of the Bank for International Settlements and sets global standards for bank supervision. They put forward two sets of capital requirements, including that cryptocurrencies like Bitcoin should bear a higher risk weight of 1250%.
However, large banks, including JPMorgan Chase and Deutsche Bank, oppose this level of capital, saying it is too conservative and may prevent banks from participating in the crypto market.
These institutions stated that they will continue to monitor the development of encrypted assets and may solve other problems as the market develops.
After the President’s Financial Markets Working Group recently issued recommendations on regulating stablecoins, officials are formulating their initiatives in the crypto space and requiring regulators to use their current powers to regulate the industry. It is now being converted to all cryptocurrencies.
Crypto.com becomes the most secure trading platform, SOC 2 approves
Moreover, according to a recent press release, Singapore-based Crypto.com has completed a SOC 2 (Service Organization Control) audit-a common standard in traditional finance. This authorization can prove the credibility of the company’s information practices, policies, and operations.
This means that Crypto.com has been certified as the most secure cryptocurrency trading platform and is the first cryptocurrency exchange for passing the SOC 2 standard. Behind the audit is Deloitte, an international company that provides audit, consulting, tax, and consulting services for global brands.
The company announced that meeting the SOC 2 standard reaffirms its commitment to data privacy and security. They added that crypto.com would continue to enhance its platform to provide the highest standards in the industry.
The company has been continuously establishing new partnerships this year. The Staples Center, home of the Los Angeles Lakers basketball team, will be renamed Crypto.Com Arena due to signing a 20-year naming rights agreement worth $700 million. The transition will occur during the hosting game during the Christmas period. The focus will be directly on the Crypto.com brand.
The exchange’s native token CRO has soared to incredible heights in the past three months, rising by more than 430%. The token’s trading price is 0.85 US dollars, the market value is more than 21 billion US dollars, and it has soared by 103.98% in 7 days. After hitting a record high, Crypto.com launched an OTC (Over-the-Counter Trading) portal to allow institutions and VIP customers to conduct large transactions seamlessly.
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