Official documents indicate that private cryptocurrencies, ie not issued by the Indian government, may be banned.
The government of India, as previously reported, has introduced a bill regarding the ban on digital assets not issued by the state. The agenda does not seem very clear, according to experts.
This week, government officials announced the project to regulate private digital assets. In addition to the embargo on cryptocurrencies, the government inserted a proposal to create a state digital currency in the text.
However, there seem to be many questions regarding what constitutes a private cryptocurrency. Some experts believe that “private” currencies could be related to assets whose transactions are not traceable, such as Zcash and Monero.
a lot of confusion
In interview Naimish Sanghvi, creator of the news portal Coin Crunch India, told Times Now channel that the concept of private coins could be related to all cryptoactives not issued and regulated by the government:
“Following this logic (…), any (cryptocurrency) issued by the government would be public and any other issued by third parties would be private.”
Second report issued in 2019, all cryptocurrencies except those issued by the government were expected to be banned in India.
But Rohit Kundliwal, marketing manager for the WazirX exchange, takes a different view of the agenda. Kundliwal posted, in his LinkedIn, that cryptocurrencies cannot be banned – only regulated:
“A lot of news is getting out about the Cryptocurrency Act, as well as the ‘ban’ of all ‘private’ cryptocurrencies. I ask people not to join the FUD and not make decisions based on fear.”
Furthermore, he informed that prominent politicians on the Indian scene have ensured that there will not be a definitive ban on cryptocurrencies.