The creator of the Indian crypto law, the former finance minister Subhash Garg, rejected the ban on “private cryptocurrencies” as a misinterpretation and at the same time emphasized the enormous potential of cryptocurrencies and blockchain technology.
The parliamentary discussions about a controversial crypto law sparked fears about the ban on crypto currencies without clearly pointing out the scope of the ban. As Cointelegraph reported, the announcement was followed by an episode of panic selling among Indian investors. In an interview with local news channel News 18, Garg made it clear:
“[The description of the crypto bill] was maybe a mistake. It is misleading to say that private cryptocurrencies will be banned and to suggest the same thing to the government. “
He believes the Indian government should draft a bill after discussing it with stakeholders and crypto investors. In addition, the bill proposes banning private cryptocurrencies without clarifying what the word “private” stands for.
As a result, the crypto community in India interpreted two different versions of the agenda of the bill itself – one that contemplates banning all non-government cryptocurrencies and the other that bans cryptocurrencies that are on public blockchains like Bitcoin (BTC) and Ethereum run (ETH).
Garg also pointed to a bug in classifying cryptocurrencies as assets after highlighting the vast ecosystem powered by disruptive technology. He also said that crypto exchanges have limited interests and do not represent the entire community:
“You don’t classify the wheat you produce or the clothing you produce as assets. This is oversimplified to be seen as an advantage. “
In conclusion, Garg added that the Central Bank’s Digital Currency (CBDC) initiatives are complex, especially in countries like India. According to him, the government must first address challenges, including the unavailability of smartphones and the issue of digital wallets.
Related: Singaporean crypto exchange enters India amid regulatory uncertainty
The Indian crypto market continues to attract international companies, most recently Coinstore, a crypto exchange in Singapore. As reported by Cointelegraph, Coinstore has raised a $ 20 million fund to build three new offices in the region.
Speaking to Cointelegraph, the Coinstore spokesman hoped for the development of a positive regulatory framework for cryptocurrencies:
“Strict KYC processes, security requirements for exchanges and a step-by-step regulation of certain crypto currencies naturally protect Indian users and would clarify the legality of certain crypto currencies.”