Indian crypto market “misinterpreted” private crypto ban, says crypto bill creator Garg
Former Finance Secretary of India, Subhash Garg, dubbed as the creator of the country’s Crypto Bill, has openly dismissed the notion that the government is banning “private cryptocurrencies”.
Garg said the banning of private crypto tokens was a “misinterpretation” while he highlighted the enormous potential of crypto and the blockchain technology.
The Parliamentary discussions surrounding the latest crypto bill has sparked fears among traders and investors as there has been no clear indication towards a ban of yet. According to news reports, a full-blown episode of panic selling had occurred among Indian investors following the announcement.
In an interview with the local TV news channel, News 18, Garg has clarified that the description of the crypto bill had been “perhaps a mistake.” He explained that it was “misleading” when said private crypto tokens would be banned in India.
In fact, Garg, indicated that the Indian government must start formulating a bill after discussions with stakeholders and crypto investors. Further, he cited that the bill suggests banning private cryptocurrencies without having clarified the term “private” in the clause.
The lack of explanation of the terminology has sent the Indian crypto community into a frenzy, resulting into self-interpreted two different versions of the crypto bill’s agenda — one that the government is considering banning all non-government issued cryptocurrencies and the other that the government has excluded cryptocurrencies running on the public blockchains like Bitcoin and Ethereum.
Garg has also pointed out a flaw in classifying cryptocurrencies among “assets” after he underscored that the vast ecosystem is being powered by disruptive technology.
In the conversation, Garg has also said that crypto exchanges right now in the country are confined to “limited interests” that “do not represent the entire community”, adding that one doesn’t classify “the wheat that is produced” or “the clothes that are produced as assets,” instead classificatying these items is “too much of oversimplification” in treating those as assets.
As a conclusionary note, Garg has added that the central bank digital currency (CBDC) initiatives, especially in India, is “complex.” According to him, the legal authorities first needs to address several challenges, “including the unavailability of smartphones and digital wallet issuance.”
The Indian crypto market, of now, is continuing to attract international firms – the latest being Singapore’s Coinstore. This crypto exchange announced offices in three Indian cities, including Delhi, Mumbai and Bengaluru.
According to reports, Coinstore has allocated a $20-million fund for setting up the three new offices in the Indian cities mentioned above.
Coinstore spokesperson responded to the announcement saying that they were “hopeful” for an incoming development of a positive crypto regulatory framework that included “strict KYC process, gradual regulation of certain crypto tokens and security requirement for exchanges” that would naturally protect the Indian users as well as clarify the legality of all cryptocurrencies.