Ever since the Indian government listed a cryptocurrency bill to be tabled in parliament during the next session, which begins next week, there has been much debate about whether the government will ban cryptocurrencies, such as bitcoin and ether.
Crypto-regulation is coming, but there are conflicting accounts about what is in it
Indian crypto legislation is approaching. The Indian government has listed a cryptocurrency account to be addressed in Lok Sabha, the lower house of the Indian Parliament, for the winter session, which begins on Monday 29 November.
The bill, entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021,” aims to “ban all private cryptocurrencies in India, but it does allow some exceptions to promote the underlying technology of cryptocurrency and its uses.”
There has been much debate about whether the Indian government will ban cryptocurrencies such as bitcoin (BTC) and ether (ETH).
The crypto bill itself has not been published and the government has not made any official statements about the bill. But many publications and industry insiders have speculated and cited various sources familiar with the matter.
Kumar Gaurav, CEO of the crypto banking platform Cashaa, tweeted on Wednesday:
I just got away with a conversation with some high-level officials from MOF [Ministry of Finance]. There is no complete ban, but the direction is to regulate crypto in line with the FATF [Financial Action Task Force] guidelines.
Gaurav added that crypto will be an asset class regulated by the Securities and Exchange Board of India (SEBI) and crypto exchanges will need to obtain licenses from the regulator. “All positive notes,” he wrote.
Avinash Shekhar, co-CEO of the Indian cryptocurrency exchange Zebpay, told CNBC’s “Squawk Box Asia” on Thursday:
My conviction is that we will have some form of coherent regulation, but on the tougher side.
Shekhar explained: “There have been many positive vibes from the government. We met with the Riksdag’s finance committee about two weeks ago… The message or the feelings we get from the government is that they are looking for some form of regulation – strict regulation, but not a complete ban. ”
Tanvi Ratna, CEO of Policy 4.0, commented: “Yes, it is expected that the government will adopt legislation during this session itself. However, it may not be a complete legislation … It is expected that some basic coins such as BTC, ETH etc. could be allowed in any form. “
However, some media have reported that the government plans to ban all cryptocurrencies and regulate only the central bank’s digital currencies to be issued by the central bank, the Reserve Bank of India (RBI).
Priyanka Chaturvedi, a member of Rajya Sabha, the upper house of parliament, commented on the news of the Indian government planning to ban cryptocurrencies via Twitter:
If true, this is a recipe for disaster that India does not need. Banning all private cryptocurrencies basically kills space – depriving India of creating a new age Fintech ecosystem.
The Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI), issued a statement on Thursday claiming that “a general ban on cryptocurrencies will encourage non-state players and thus lead to more illegal use of such currencies.”
Last week, Indian Prime Minister Narendra Modi called on all democracies to work together on cryptocurrency to “ensure that it does not fall into the wrong hands, which could ruin our youth.” He also led an extensive meeting on crypto. In addition, India’s Standing Parliamentary Finance Committee met with representatives of the crypto industry.
Do you think India will ban cryptocurrencies like bitcoin? Let us know in the comments section below.
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