The Creator of India’s Crypto Bill, Former Finance Secretary Subhash Garg, dismissed the notion of banning “private cryptocurrencies” as a misinterpretation and highlighted the enormous potential of cryptocurrencies and blockchain technology.
Parliamentary discussions around a controversial cryptocurrency bill sparked fears around a cryptocurrency ban, with no clear indication of the scope of the ban. As Cointelegraph reported, a panic selling episode among Indian investors followed the announcement. In an interview with the local news channel News 18, Garg clarified:
“[La descripción de la ley de criptomonedas] it was perhaps a mistake. It is misleading to say that private cryptocurrencies will be banned and to hint to the government about the same. “
He believes that the government of India should formulate a bill after discussing it with stakeholders and cryptocurrency investors. What’s more, the bill suggests banning private cryptocurrencies without clarifying what the word “private” means.
As a result, the cryptocurrency community in India self-interpreted two different versions of the bill’s agenda: one that considers a ban on all government-issued cryptocurrencies and the other that excludes cryptocurrencies that run on public blockchains such as Bitcoin (BTC) and Ether (ETH).
Garg also pointed to a failure to classify cryptocurrencies as assets after highlighting the vast ecosystem driven by disruptive technology. He also said that cryptocurrency exchanges have limited interests and do not represent the entire community:
“You don’t classify the wheat you produce, you don’t classify the clothes you produce, as assets. That’s too much of a simplification to treat this as an asset. “
On a final note, Garg added that the central bank’s digital currency initiatives, especially in countries like India, are complex. According to him, the government must first address the challenges, including the unavailability of smartphones and the issuance of digital wallets.
India’s cryptocurrency market continues to attract international companies, the latest being Coinstore, a Singapore cryptocurrency exchange. As Cointelegraph reported, Coinstore has allocated a USD 20 million fund to establish three new offices in the region.
Speaking to Cointelegraph, a Coinstore spokesperson was hopeful that a positive crypto regulatory framework would develop:
“The strict KYC process, the security requirement for exchanges, as well as the gradual regulation of certain cryptocurrencies naturally protect Indian users and would clarify the legality of certain cryptocurrencies.”