Indian cryptocurrency exchanges have witnessed a drop in the number of new individuals signing up on their platforms in light of the new cryptocurrency bill, which will be tabled during the Winter Session of Parliament.

Potential cryptocurrency investors are staying put at the moment, due to a growing buzz that the government is planning to ban private cryptocurrencies with the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

While there are no clear details about the bill, the initial description indicates that the government is planning to prohibit private cryptocurrencies and pave the way for the Reserve Bank of India (RBI) to release its own digital currency.

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Reports indicate that cryptocurrency investors are looking for some clarity on regulation before they can resume full-fledged trading involving virtual coin assets.

As soon as news spread that the government plans to table the new cryptocurrency bill in Parliament, crypto prices on Indian exchanges crashed. Cryptocurrency prices have remained weak in India since last week.

Shivam Thakral, CEO, BuyUCoin, told The Economic Times that the firm has seen a 20 per cent drop in new sign-ups on a week-to-week basis. “We had an average daily sign-in rate of 8,000-10,000 per day during the recent bull cycle.”

Other major exchanges have also witnessed a drop in new sign-ins. Meanwhile, smaller exchanges said they were witnessing steady sign-ins as people remain worried and curious about the new asset class amid growing concerns over stricter regulations for the sector.

However, some industry trackers who spoke to the publication said transaction volumes had increased in the last few days as investors rushed to sell cryptocurrency assets. They added that panicked investors have already sold off their holdings and the situation is likely to remain stable as long as more details about the bill become clear.