There is no denying that the Indian government maintains a controversial relationship with cryptocurrencies, which was recently clarified when the government indicated that it plans to ban all private cryptocurrencies – a list that could include virtually all digital assets on the market today – after the. I previously removed all of these restrictions in 2019.
More specifically, when the government meets for the winter session, it is expected to discuss the Cryptocurrency and Official Digital Currency Act 2021, which, as the name suggests, aims to create a legal framework where all private cryptocurrencies can be banned. . …
However, there is still a lot of confusion surrounding the term private cryptocurrency, and some suggest that it may simply refer to security-oriented tokens such as Monero (XMR) or ZCash (ZEC). On the other hand, Naimish Sanghvi, founder of the cryptocurrency news site Coin Crunch India, believes that the Indian government’s definition of a private asset can be extended to include almost all cryptocurrencies in the market, noting:
“In the Department of Economics’ report from 2019 on cryptocurrency, they basically stated that everything that is not a sovereign is defined as a private cryptocurrency. By that logic, it means that Bitcoin and Ethereum will fall under that definition. ”
Abundant blurry lines
Nishal Shetty, CEO of the Indian cryptocurrency exchange WazirX, told Cointelegraph that it is difficult to understand what the authorities mean by private cryptocurrencies, especially since well-known assets such as Bitcoin (BTC) and Ether (ETH) are primarily public cryptocurrencies. It is built on a transparent foundation. Blockchain Infrastructure – Each project has its own set of specific use cases.
Shetty also stressed that people can not use Indian Rupees or Ribbons (USDT) to pay fees on Bitcoin or Ether blockchains. Instead, they need cryptocurrency to use decentralized applications (DApps) and generate non-fungible tokens (NFT). He said:
Although the bill’s description looks like in January 2021, there have been several noticeable developments since January. First, the Standing Parliamentary Committee called for public consultations, then the Prime Minister himself called for the introduction of crypto rules in India. ”
Sumit Gupta, CEO of the cryptocurrency exchange CoinDCX, told Cointelegraph that there is no official name for a private cryptocurrency anywhere in the world, and therefore the public is now eagerly awaiting the definition of private assets by the Government of India.
He also noted that since full information about the bill is not yet available, it is best not to speculate on what it might entail. One thing is clear, however: the government is aware of the transformative potential of the blockchain and places more emphasis on its various uses and applications in our everyday lives. Gupta notes:
“A complete ban is unlikely, as it would question India’s ability to use blockchain technology to transform our industry – a result we believe politicians prefer to avoid. Crypto is a powerful trend shaping economies around the world, and we are “remain confident that our politicians will make the rules, which will allow our economy to take full advantage of the benefits that the global crypto industry has to offer.”
Is it a general ban on the horizon?
Asked about the possibility of a general ban on raising his ugly head again, Shetty said it would be best to wait and learn more about the bill. He admitted that he was optimistic about India’s general view of cryptocurrencies, citing recent comments from Finance Minister Nirmala Sitharaman, who suggested that India could only try to “regulate the digital assets sector” instead of cracking down on all innovation coming from it.
Shetty referred to the Financial Action Task Force’s Comprehensive Guidelines on Money Laundering (FATF), proposed at this year’s G20 summit, which stated that cryptocurrency does not pose a threat to a country’s domestic economy, adding:
“A general ban will also increase the OTC markets, fake stock markets and brain drain from India. Today, the crypto industry directly / indirectly employs 50,000 people and generates millions in tax revenue for the state. The crypto industry is open to regulation, but a complete ban is something that will damage the system. ” financial and technological environment for the whole country. ”
In the same way, Gupta is ready to welcome any bill as it ensures that politicians understand the importance of this new asset class, as well as its increased application.