The two leading digital assets rose on Thursday amid optimism that new rules for cryptocurrencies planned by the Indian government would fall short of a direct ban.
came under pressure on Wednesday, when markets reacted to India’s intention to ban most cryptocurrencies as part of a plan to introduce a digital currency regulated by the central bank. The government has submitted a bill on this which will be discussed in the Storting meeting which starts on 29 November.
The bill “seeks to ban all private cryptocurrencies in India, but it allows for certain exceptions to promote the underlying technology of cryptocurrency and its use,” according to a bulletin posted Tuesday on Parliament’s website.
But not everyone is so pessimistic about how this could turn out.
“My belief is that we want some kind of coherent regulation, but on the tougher side,” Avinash Shekhar, co-CEO of Zebpay – an Indian cryptocurrency exchange – told CNBC on Thursday.
Shekhar told the media that there have been “many positive vibes from the government”.
“We met with Parliament’s Finance Committee about two weeks ago,” said the crypto chief. “The message or feeling we get from the government is that they are looking for some kind of regulation – strict regulation, but not a complete ban.”
Bitcoin, which is the largest crypto with a market value of 1.1 trillion dollars, rose 4% on Thursday to around 58,700 dollars, up from the lowest levels close to 56,000 dollars reached on Wednesday, according to price data from CoinDesk. Bitcoin has fallen around 15% from its record high of almost $ 69,000 earlier this month.
Ether, the second-largest digital asset, was similarly 4% higher at $ 4450, but is still more than 8% down from a record high in early November close to $ 4900.
The global rise in Bitcoin and Ether was even more pronounced across Indian cryptocurrency markets, with both digital assets rising more than 9% on Thursday on Wazir, a domestic cryptocurrency exchange.