Experts are divided over the extent of the ban on “private cryptocurrencies” in India

The 2019 government documents were cited by a crypto expert from India to point this out the proposed ban on all “private cryptocurrencies” could include almost all cryptocurrencies.

The Indian government announced this week that it will introduce the cryptocurrency law and regulation of official digital currency in 2021 (Cryptocurrency Act and Regulation of Official Digital Currency 2021) if he meets in the winter session on Monday.

The bill provides for 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 about what exactly constitutes a “private cryptocurrency” with some users speculating that it could be “private” currencies like Monero (XMR) or Zcash (ZEC).

Experts are divided over the extent of the ban on “private cryptocurrencies” in India
Experts are divided over the extent of the ban on “private cryptocurrencies” in India

Naimish Sanghvi, founder of crypto news website Coin Crunch India, stated in an interview with India Upfront on Thursday that: According to the government’s definition, private cryptocurrencies could mean almost any cryptocurrency out there. Called:

The Ministry of Commerce’s 2019 report on cryptocurrencies essentially states that anything that is not sovereign is called private cryptocurrency.

â ???? And according to this logic, it means that Bitcoin and Ethereum fit 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 that “all private cryptocurrencies, with the exception of cryptocurrencies that may be issued by the government, are banned in India.“It said:

â ???? All of these cryptocurrencies were created by non-sovereign persons and in this sense are completely private companies.

But Rohit Kunliwal, Marketing Director of the Indian crypto exchange WazirX, he called for calm and played down fears of a total ban.

In a LinkedIn post on Wednesday, Kundliwal stated that cryptocurrencies cannot be banned, only regulated and that there is no clarity as to what a private cryptocurrency is.

He added that “Shri Narendra Modi, Nirmala Sitaraman, The Treasury and many prominent and sensible politicians have said several times that there will be no blanket ban on cryptocurrencies.

Meanwhile, the Indian deputy of the Shiv Sena Priyanka Vickram Chaturvedi said in a interviewWednesday with India Today that the proposed ban is a “backward movement and a little late”. Called:

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

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

The market reacted dramatically to news of a possible ban, and WazirX prices slumped at 3:30 UTC Wednesday morning as users scrambled to sell their inventory. The panic selling event plunged the price of Bitcoin (BTC), Ether (ETH) and Cardano (ADA) into a double-digit local devaluation.

On November 18th, the Indian Prime Minister, Narendra Modi, urged all democratic nations to work together on regulating cryptocurrencies, particularly Bitcointo “keep it out of the wrong hands that could ruin our youth.”

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