Crypto bill alleging banning private crypto was a “mistake,” ex-Indian minister says

India’s central bank has been accused of banning the use of crypto in private for domestic transactions. As India moves to a more cashless society, this is seen as a major setback by many people within the country who are still reliant on digital options. However, ex-Indian minister Suresh Prabhu says “I think it was an error.”

The “crypto bill india” is a bill that was proposed by the Indian government. The bill would have banned private cryptocurrencies, but this was seen as a “mistake.”

Subhash Garg, India’s former finance secretary, stated in an interview with News18 that reports of India placing a blanket ban on private crypto may be deceptive, given that the law has yet to be debated in parliament or get any government involvement.

Garg went on to say that since the proposed bill hasn’t been addressed or made accessible to legislators, it’s too early to guess or create fresh ideas on the subject.

The Cryptocurrency Conundrum in India

Garg was a key contributor to the 2019 crypto law, which proposed a complete ban on all crypto activity in India, as well as stiff fines and arrest warrants for anybody who disobey the order.

Garg’s views on cryptocurrencies seem to have altered since then, as he described crypto assets as “a valuable instrument for mankind” in an interview with News18.

Garg also said that the new crypto law must be implemented in its entirety in India since the “blockchain world of cryptocurrency has gotten tremendously huge” today, necessitating suitable regulatory measures rather than outright prohibition.

The proposed cryptocurrency law for 2021 also calls for the creation of an independent Central Bank Digital Currency (CBDC) supported by the Reserve Bank of India. Garg went on to list the drawbacks of starting a CBDC in India, citing a number of issues such as the lack of internet and smartphone access in rural India.

CBDCs are often held in digital wallets on smartphones to make payments, according to him, and half of India’s population does not own a smartphone, making it impossible for the government to accept CBDC on a national basis.

The government must first pass a new crypto law.

In a parliamentary session on Tuesday, India’s Finance Minister, Nirmala Sitharaman, announced that the new crypto law would first seek clearance from the Union Cabinet before being introduced in the house.

Sitharaman also claimed that the government is looking into the possibility of bringing Non-Fungible Tokens, or NFTs, into the Indian financial system. She also said that although a decision to prohibit misleading crypto advertisements has yet to be made, the Reserve Bank of India, in partnership with the Securities and Exchange Board of India, is working to raise investor awareness about deceptive crypto advertisements.

The most relevant daily news in the worlds of crypto, DeFi, NFTs, and more are summarized here.

Gain a competitive advantage in the cryptoasset market.

As a premium Edge member, you’ll get additional crypto insights and context in every story.

Analyses of the whole chain

Snapshots of prices

a little more context

For just $19 a month, you can become a member right now. Examine all of the advantages.

Posted in: India, Legislation, Regulation

Watch This Video-

The “indian crypto exchange” is a bill that was passed by the Indian government and banned private cryptocurrencies. The ex-Indian minister says that it was a “mistake.”