India's crypto ban plan leads to 'heavy selling'

Cryptocurrencies have been sold off heavily in India over the last few days.

That's according to traders and investors observing the market.

It comes after the Indian government released plans for a new bill that would ban most private digital currencies.

Details revealed on Tuesday (November 23) showed India may only allow certain cryptocurrencies to promote the underlying technology and its uses.

Most citizens would be banned from trading in cryptos if the bill is passed.

One investor told Reuters the value of his portfolio had fallen from around $457 to about $295 due to the heavy sales.

Traders also said some exchanges faced deposit and withdrawal challenges due to the selling.

Industry experts estimate that India has between 15 to 20 million crypto investors with total holdings of more than $5 billion.

India's move comes months after its neighbour China also reined in cryptocurrencies.

The country banned all crypto transactions and mining in September.

India's central bank still plans to move ahead with an official e-coin.

Its digital currency is set to launch next month.

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