India misinterpreted private crypto ban, says crypto bill creator

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The creator of India’s crypto law, former Finance Minister Subhash Garg, has dismissed the idea of ​​banning “private cryptocurrencies” as a misinterpretation, highlighting the huge potential of cryptocurrencies and blockchain technology.

Parliamentary debates over a controversial crypto bill have raised concerns about a crypto ban, without any clear indication of the scope of the ban. Cointelegraph stated that the announcement was followed by a cycle of panic selling among Indian investors. In an interview with local news channel News 18, Garg explained:

“[Description of cryptocurrency] may be wrong. It would be wrong to say that private cryptocurrencies will be banned and to say the same to the authorities. ”
He believes that the Indian government should draft the bill after discussing it with stakeholders and crypto investors. In addition, the bill proposes banning private cryptocurrencies, without specifying what “private” means.

As a result, the crypto community in India has interpreted two different versions of the bill’s agenda: one banning all non-government cryptocurrencies, and the other excluding cryptocurrencies running on public blockchains such as Bitcoin (BTC) and Ethereum (ETH).

Garg also pointed out the misclassification of cryptocurrencies as assets, highlighting a huge ecosystem that relies on revolutionary technologies. He also said that cryptocurrency exchanges have limited interests and do not represent society as a whole:

“You don’t classify the wheat you produce, and you don’t classify the clothes you make as assets. That is an oversimplification that cannot be considered a resource.”
Garg concluded by adding that CBDC initiatives, especially in countries like India, are complex. He said the government must first and foremost address issues, including the unavailability of smartphones and the issuance of digital wallets.

Related: Singapore Crypto Exchange Enters India Amid Regulatory Uncertainty

The Indian cryptocurrency market continues to attract international companies, most recently Coinstore, a cryptocurrency exchange based in Singapore. According to Cointelegraph, Coinstore has committed $20 million to open three new offices in the region.

In a conversation with Cointelegraph, a Coinstore spokesperson expressed hope for a positive crypto regulatory framework:

“The strict KYC process, security requirements for exchanges, and the gradual regulation of some cryptocurrencies naturally protect Indian users and clarify the legitimacy of some cryptocurrencies.”

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