India’s finance minister Arun Jaitley has once again said that the government is “not getting into crypto” and that their previous statement on a ban was misinterpreted. The Finance Minister says, “We will not allow India to be used for illicit activities.” Many are surprised by his new stance since it contradicts what he had previously stated just last month.
The “cryptocurrency is legal” bill creator has stated that India misinterpreted the ban, as it was not a ban on cryptocurrency. Read more in detail here: is cryptocurrency legal.
Former Finance Minister Subhash Garg, who drafted India’s crypto law, rejected the idea of prohibiting “private cryptocurrencies” as a misconception, instead emphasizing the huge potential of cryptocurrencies and blockchain technology.
The debate in Parliament over a contentious crypto law has raised worries of a cryptocurrency ban, with no clear indication of the extent of the restriction. According to Cointelegraph, the statement triggered a wave of panic selling among Indian investors. Garg detailed the situation in an interview with local TV program News 18:
“Perhaps [the description of the crypto banknote] was incorrect. It is deceptive to claim that private cryptocurrencies would be prohibited and to inform the authorities of this.”
He thinks that after consulting with stakeholders and crypto investors, the Indian government should draft a law. Furthermore, the measure proposes prohibiting private cryptocurrencies without defining what “private” means.
As a consequence, the Indian crypto community has self-interpreted two versions of the bill’s agenda: one that proposes outlawing all non-government issued cryptocurrencies, and another that excludes cryptocurrencies that operate on public blockchains like Bitcoin (BTC) and Ethereum (ETH) (ETH).
After highlighting the wide ecosystem fueled by disruptive technologies, Garg also pointed out a weakness in defining cryptocurrency as assets. He also said that cryptocurrency exchanges only represent a small portion of the community:
“You don’t categorize your wheat as an asset, and you don’t classify your clothing as an asset.” To see something as an asset, that is an oversimplification.”
Garg concluded by stating that central bank digital currency (CBDC) projects, particularly in nations such as India, are difficult. According to him, the government must first solve issues such as smartphone shortages and the distribution of digital wallets.
In the midst of regulatory uncertainties, a Singaporean crypto exchange joins India.
Coinstore, a Singaporean crypto exchange, is the latest multinational company to enter the Indian crypto sector. Coinstore has put aside a $20 million money to open three additional offices in the area, according to Cointelegraph.
Coinstore’s spokesman told Cointelegraph that he was optimistic about the establishment of a favorable crypto regulatory framework:
“Strict KYC procedures, exchange security requirements, and progressive regulation of specific cryptocurrencies safeguard Indian consumers and explain the legality of particular cryptocurrencies.”
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