Since the Indian government listed a cryptocurrency bill to be considered in parliament at an upcoming meeting starting next week, there has been a constant debate about whether the government will ban cryptocurrencies such as Bitcoin and Ethereum.
Encryption regulation is coming, but there are conflicts about its content
India’s encryption legislation is coming soon.The Indian government has List the cryptocurrency bill The Winter Conference, which will begin on Monday, November 29th, will be held in Lok Sabha, the Lower House of the Indian Parliament.
The bill entitled “Encryption and Regulation of the Official Digital Currency Act of 2021” aims to “ban all private cryptocurrencies in India, however, it allows certain exceptions to promote the underlying technology and uses of cryptocurrencies.”
The encryption bill itself has not been made public, and the government has not issued any official statement on the bill. However, many publications and industry insiders have been speculating and citing various sources familiar with this matter.
Kumar Gaurav, CEO of crypto banking platform Casaa, wrote on Twitter on Wednesday:
I just got off the car and talked on the phone with several senior officials of the Ministry of Finance [Ministry of Finance]. Not completely prohibited, but the direction is to encrypt according to the FATF specification [Financial Action Task Force] Guidelines.
Gaurav added that cryptocurrency will become an asset class regulated by the Securities and Exchange Commission of India (SEBI), and cryptocurrency exchanges need to obtain regulatory approval. “All positive signs,” he wrote.
On Thursday, Avinash Shekhar, the co-CEO of the Indian cryptocurrency exchange Zebpay, told CNBC’s “Squawk Box Asia”:
I believe we will have some kind of coherent supervision, but in a more stringent way.
Shekhar explained: “The government has had a lot of positive effects. About two weeks ago, we met with the Parliamentary Finance Committee… The information or feeling we got from the government is that they are seeking some kind of regulation-strict regulation, but not It’s completely forbidden.”
Policy 4.0 CEO Tanvi Ratna commented: “Yes, the government is expected to pass legislation at this session. However, it may not be a complete legislation… some basic coins are expected, for example Bitcoin, Ethereum Etc. can be allowed in some form. “
However, some media reports stated that the government plans to ban all cryptocurrencies and only supervise central bank digital currencies issued by the central bank Reserve Bank of India (RBI).
Priyanka Chaturvedi, Member of the House of Lords Rajya Sabha, commented on the news that the Indian government plans to ban cryptocurrencies via Twitter:
If true, this is the secret of disaster that India does not need. Banning all private cryptocurrencies is basically killing this space-depriving India of its ability to create an ecosystem for the new era of financial technology.
The Blockchain and Encrypted Assets Committee (BACC) of the Internet and Mobile Association of India (IAMAI) issued a statement on Thursday, stating that “a total ban on cryptocurrencies will encourage non-state participants, leading to more illegal use of such currencies.”
Last week, Indian Prime Minister Narendra Modi (Narendra Modi) urged all democracies to work together on cryptocurrency to “ensure that it does not fall into the wrong hands, which will destroy our youth.” He also hosted. A comprehensive conference on encryption was held. In addition, the Standing Committee on Finance of the Indian Parliament held a meeting with representatives of the crypto industry.
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