Nirmala Sitharaman, the finance minister of India, during the Lok Sabha discussion today, said that the government fully supports Bitcoin and the underlying technology behind it and definitely not looking for banning in India. She did not mention anything about restricting crypto and the suspension of crypto trading activities.
TheCoinRise further confirmed the news with an internal source which says that the authorities are only looking to regulate crypto under the asset class. While it still would not allow it as a form of payment. Therefore, crypto trading will not be affected while the payments will be restricted.
Earlier this week, the government’s announcement regarding the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, along with 26 more bills to be presented in front of India’s parliament for discussion, confused the investors about the “private crypto” term.
How would India react to the good news?
While the authorities’ attitude remained calm and supportive, along with calling other democratic countries to come together and collaborate for crypto regulation, people panicked, and a huge sell-off crashed the crypto exchange WazirX app earlier this week. The main reason for the panic was the leaked snapshot of the bill, leading to speculations of banning the crypto market in India.
The finance minister, however, took the side of the crypto community indirectly supporting the technology and cleared all such speculations.
“This is not an era where you can say I don’t care about what’s happening, or we don’t want to do anything. At the same time, are we yet ready to go the El Salvador way? We have to be sure that a futuristic thing can’t be shut out.”
Despite the country’s regulatory opposition, Sitharaman has a record of indirectly promoting the decentralized industry. At the end of Q3, Sitharaman advised the government against being overly cautious about cryptocurrency, claiming that it may be a risky decision that would stifle “a futuristic thing.”