Experts agree on how far India’s “private crypto” ban will go



Experts agree on how far India's “private crypto” ban will go

Government documents from 2019 were cited by an Indian crypto expert to suggest that the proposed ban on all “private cryptocurrencies” could include almost any crypto.

The Indian government announced this week that it will adopt the cryptocurrency law and regulation of official digital currency in 2021 when it meets for its winter session on November 29th.

The draft law seeks a legislative vote on the creation of an official digital currency and at the same time imposes a ban on “all private cryptocurrencies”. However, there seems to be a lot of confusion as to what exactly constitutes a “private cryptocurrency” with some users speculating that it might refer to “privacy” coins like Monero or Zcash.

CoinCrunch India crypto news website founder Naimish Sanghvi stated in a November 25 interview on India Upfront that according to the government’s definition, private crypto could mean pretty much any cryptocurrency out there. He said:

“The Ministry of Economic Affairs’ 2019 report on cryptocurrency essentially states that anything that is not sovereign is referred to as private cryptocurrency.”

“And according to that logic, it means that Bitcoin and Ethereum fall into that definition,” he said, adding that “everything that is spent by the government is public and everything that is spent by private players is public” .

The 2019 report in question recommended “banning all private cryptocurrencies in India, with the exception of cryptocurrencies that may be issued by the government”. It was said:

“All of these cryptocurrencies were created by non-states and in this sense are exclusively private companies.”

But the marketing manager of the Indian crypto exchange WazirX Rohit Kundliwal urged calm and downplayed fears of a total ban.

In a LinkedIn post yesterday Kundliwal pointed out that crypto cannot be banned, only regulated and that there is no clarity about what constitutes a private cryptocurrency.

He added that “Shri Narendra Modi, Nirmala Sitaraman, Treasury Department and many prominent and sane politicians have said several times that there will be no blanket ban on crypto.”

Meanwhile, Indian Shiv Sena MP Priyanka Vickram Chaturvedi said on a November 24th interview with India Today that the proposed ban is a “step backwards and a little late”. She said:

“The ban on private cryptocurrencies basically ends the whole idea of ​​a new fintech that can emerge as huge employment and generator for the new economy.”

She said the government “needs to create an environment that will develop and prosper. The effect of this … is you kill this whole room.

Related: India plans to cut the GST paid on crypto exchange fees from 18% to 1%

The market reacted dramatically to news of a possible ban as prices on India’s WazirX crypto exchange plummeted at 3:30 a.m. UTC on Wednesday morning as users scrambled to sell their holdings. The panic selling event caused the price of Bitcoin (BTC), Ether (ETH) and Cardano (ADA) to drop into double-digit local discounts.

On November 18, Indian Prime Minister Narendra Modi called on all democratic nations to work together to regulate cryptocurrency, particularly Bitcoin, to “ensure it doesn’t fall into the wrong hands that can spoil our youth”.



Experts agree on how far India's “private crypto” ban will go

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