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

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WazirX crashes

Highlights:

  • Bitcoin, Ethereum, and dogecoin prices crash in India amid fears of the crypto ban.
  • The central government is all set to introduce“The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
  • WazirX crashes after users sell on talk of India crypto ban.

Cryptocurrency prices have decreased sharply in India’s domestic exchanges, following reports that the government is planning to introduce a bill in the upcoming winter session of Parliament that would ban most private cryptocurrencies. Under the draft, Cryptocurrency and Regulation of Official Digital Currency Bill, 2021- mining, holding, selling, issuing, transferring, or use of cryptocurrency in India is punishable with a fine or imprisonment of up to 10 years, or both.

WazirX crashes

Indian cryptocurrency exchanges WazirX and CoinDCX suffered hour-long outages late on Wednesday as the price of Bitcoin, the world’s leading cryptocurrency, fell sharply to a multi-month low. As the price was declining, many investors looked to sell their crypto assets to avoid heavy losses but were unable to do so since the servers of WazirX and CoinDCX crashed and denied those trades.

According to reports, prices on WazirX for Bitcoin (BTC) dropped by 17.17 percent to touch Rs 37,78,000. Moreover, the digital token Ethereum’s value declined by 14.1 percent to Rs 2,87,773. Similarly, Dogecoin was also down by 17.21 percent to Rs 14,9000; however, WazirX’s own token WRX value further declined by 22 percent to Rs 78.

Other investors tried to buy cryptocurrencies while the price was low, but the transactions didn’t come through, causing a loss of valuable time before the prices of Bitcoin bounced back. Several investors converted their cryptocurrencies to INR and initiated withdrawal requests, but complained that while the amount had been deducted from their crypto wallets, the same wasn’t reflected in their bank accounts.

The company had said then that the lag had occurred due to a 10x rise in concurrent users which its server was unable to handle. WazirX has explained that recent problems with its mobile application can be attributed to a significant rise in user signups and trading volumes and that the company is scaling up to address these concerns.

The crypto exchange platform advised users to not sell their assets in panic mode, adding that differences in exchange rates and countries will always be in place due to demand and supply factors.

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