Experts are divided on how far India’s “private encryption” ban will go

An Indian encryption expert cited a 2019 government document, suggesting that the proposal to ban all “private cryptocurrencies” might include almost all encryption.

The Indian government announced this week that it will introduce cryptocurrency and the 2021 official digital currency bill at the winter meeting on November 29.

The bill seeks Legislative vote on the creation of an official digital currency At the same time, “all private cryptocurrencies” are banned. However, there seems to be a lot of confusion as to the exact composition of “private cryptocurrency”, and some users speculate that it may refer to “private” coins, such as Monero or Zcash.

Naimish Sanghvi, founder of crypto news site CoinCrunch India, explained in a statement on November 25 interview In India, according to the government’s definition, private encryption may mean almost all cryptocurrencies. He said:

“In the 2019 Ministry of Economic Affairs report on cryptocurrencies, they basically said that all non-sovereign things are designated as private cryptocurrencies.”

“According to this logic, this means that Bitcoin and Ethereum will fall into this definition,” he said, adding, “Anything issued by the government is public, and everything issued by private participants is public. “

2019 year report The questionable proposal “bans all private cryptocurrencies in India, except for any cryptocurrencies that may be issued by the government.” It stated:

“All these cryptocurrencies are created by non-sovereign parties. In this sense, they are completely private companies.”

But the marketing manager of Indian cryptocurrency exchange WazirX Rohit Kundliwal urged to stay calm and downplay concerns about a complete ban.

On LinkedIn postal Kundliwal pointed out yesterday that encryption cannot be banned, it can only be regulated, and it is not clear what private cryptocurrency is.

He added: “Shri Narendra Modi, Nirmala Sitaraman, the Ministry of Finance and many famous and sane politicians have repeatedly told us that there will be no total ban on cryptocurrencies.”

At the same time, Priyanka Vickram Chaturvedi, Member of India’s Shiv Sena interview “India Today” believes that the proposed ban is “regressive and it is too late.” she says:

“The ban on private cryptocurrency basically ends the whole idea of ​​new financial technology, which can become a huge job opportunity and generator of the new economy.”

She said that the government must “promote an environment of continuous development and prosperity. The effect of doing so… is that you are killing the entire space.”

related: India will reduce the goods and services tax paid for cryptocurrency transaction fees from 18% to 1%

The market reacted violently to the news of the possible ban, and prices rose Indian cryptocurrency exchange WazirX plummets At 3:30 am UTC on Wednesday, users scrambled to sell their shares. The panic selling event depressed the price of Bitcoin (Bitcoin), ether (Ethereum) And Cardano (Have) Depreciation at double-digit local prices.

On November 18th, Indian Prime Minister Narendra Modi Call on all democracies Work together to regulate cryptocurrencies, especially Bitcoin, to “ensure that it does not fall into the wrong hands, which will destroy our youth.”

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