India confused about what “private crypto” mean to the government

An Indian crypto expert has cited a 2019's government document that suggests that private cryptocurrencies ban could include all tokens. 
An Indian crypto expert has cited a 2019's government document that suggests that private cryptocurrencies ban could include all tokens. 

India’s crypto ban has been the hottest topic in recent days, and the panic has intensified as a crypto expert has cited a 2019’s government document that suggests that the upcoming ban on all “private cryptocurrencies” could include all the cryptocurrencies. 

The government of India recently announced about introducing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, and will propose the bill to parliament at the Winter Session on November 29.

The bill will be presented for legislative voting on creating digital currency and imposing a ban on “all private crypto tokens.” Some users, however, speculate that “private” currency could mean coins like Monero and Zcash.

In a November 25 interview on India Upfront, Naimish Sanghvi, the founder of crypto media outlet CoinCrunch India, emphasized that per the government’s definition, private crypto may refer to any cryptocurrency. 

He said that the Department of Economic Affairs reported in 2019 that:

“Everything that is non-sovereign is designated as a private cryptocurrency.” 

He said that it might imply that Bitcoin and Ethereum are also under this “private crypto” definition and anything that the government issues is public while anything private players issue is private.

The 2019 report recommended that all private crypto tokens, except any crypto issued by the government, should be prohibited in India.

Banning crypto is not the solution for India

The Indian crypto exchange WazirX’s marketing manager Rohit Kundliwal downplayed outright ban fear and advised people to calm down.

Yesterday on November 24 morning, WazirX crashed due to heavy activity on the app after the FUD of crypto banning in India. This resulted in most crypto tokens slipping by double digits.

Kundiwal, in his recent LinkedIn post, said that crypto could only be regulated, and there is no clarification on what private crypto means to the government.

India, with the highest number of investors in the whole world, is looking for ways to adopt the crypto market but in a regulated manner for which the officials first met crypto enthusiasts and now are in the process of bringing a bill to “ban” or impose a tax on crypto.

PM Modi, on November 18, urged all democratic countries to work together to regulate crypto to ensure it stays in the right hands.

On the other hand, Priyanka Vickram Chaturvedi, Shiv Sena MP, said:

“Banning private cryptocurrencies is basically ending the entire idea of a new fintech that can emerge as a huge employment and generator for the new economy.”