Amid rumors that cryptocurrencies will be banned by a forthcoming crypto bill in Parliament, many crypto users on Indian exchanges are panicking.
However, experts say crypto investors need not fear as the content of the proposed bill is not yet known.
Investors should wait for the government’s official statement on this matter and not rely too much on information coming from secondary sources.They also emphasized that crypto investors in the country should be calm and do their research before coming to a quick conclusion.
Investors who trade in Bitcoin, Ethereum, and Likes can breathe because these are public blockchain-based cryptocurrencies but are different from private cryptocurrencies like Monero, Dash, and others like this.
The bill to regulate cryptocurrencies in India will be introduced in Parliament in the coming winter sessions. The bill is “The Cryptocurrency and Regulation of the Official Digital Currency Bill 2021”.
Interestingly, there has been no change in the interpretation of the bill previously listed for submission to Parliament. It says: “Creating a smooth framework for creating the official digital currency issued by the Reserve Bank of India. The bill seeks to ban all private cryptocurrencies in India but allows some exceptions to promote the basic technology of cryptocurrency and its uses.
However, experts urged that the government needs to clarify what it means by using “private cryptocurrencies“. Sarath Chandra, Blockchain and Emerging Tech Evangelist said,
“The government needs to come clean. How do they define cryptocurrencies?
Private cryptocurrency, on the other hand, can represent Monero, Dash and the like – although it is built on public blockchains, it hides transaction information to provide privacy to users. Bitcoin offers anonymity, Monero offers privacy and is a private token.
Experts are surprised that there has been no change in the interpretation of the proposed bill to be introduced in Parliament over the past 5-6 months of public debate on crypto and statements made by the government on the need to regulate crypto. While some feel that this may be a clerical error as it is the recent government view to regulate cryptocurrencies in India without banning them.
In the meantime, WazirX, the largest crypto exchange platform in India CEO Nischal Shetty, tweeted
Attempts to ban crypto in other countries have not been successful. No country in the world has completely banned cryptocurrencies. Those who tried didn’t succeed.
However a quilt ban will force crypto exchanges to cease operations in India. Huobi, one of the largest crypto exchanges in the world, had to do the same when China banned cryptocurrencies earlier in September this year.