Prohibition Of Private Cryptocurrencies In India

The Truth Behind the Cryptocurrency ban in India

The Government of India is all set to inaugurate ‘A Regulatory Bill’ for the prohibition of Private Crypto Currencies in the country. Besides this, RBI (Reserve Bank of India) is also planning on launching its digital currency, which is speculated to replace fiat money soon. However, an unfolding of the Financial Bill is still awaited.

We at the Coin Republic with Abhiruk Bhattacharyya, our community manager, endeavored to explore what the ‘Private Cryptocurrency Prohibition’ Bill might mean for crypto enthusiasts in India. Concerning the matter, we arranged an exclusive interview with the crypto educator and AVP-Marketing at WazirX, Pareen Lathia. The following below are excerpts from the interview. 

What Does Indian Government Mean By Private Cryptocurrency?

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The Lok Sabha bulletin circulated on January 29, 2021, highlighted the proposed bill’s purpose. The two primary goals stated were: prohibition of ‘Private Crypto Currency’ and granting certain exceptions for the promotion of underlying technology that major Crypto Currencies utilize. Moreover, the Reserve Bank of India is planning to launch its very own cryptocurrency.

There is plenty of confusion in the industry since nobody understands what the Government means by private cryptocurrencies. Bitcoin and Ether are public, but private cryptocurrencies may or may not represent privacy coins like Monero, Zcash. Private cryptocurrencies may also represent those coins that are floated by companies or individuals living in India. Although, once the Bill is out, people will get a clearer idea about what the Government aims to perform. In the current situation, there is no clarity apart from the fact that the Government is looking to implement a Regulatory Bill against Private Cryptocurrency. 

Imprisonment For Ten Years To Prohibition 

China banned crypto in 2017, while The United States attempted to ban crypto quite similarly. But, India made world headlines in 2019, when the country declared a bill affirming ten years of imprisonment to citizens found holding and trading in crypto. 

However, in the prevailing situation, RBI has only mentioned that there will be ‘A Regulatory Bill.’ One can be optimistic and observe the changes in the wordings, signifying that India has gravitated from 10 years of imprisonment to okay that they will regulate it! This is a positive sign and may boom the crypto ecosystem in the country!

India’s Progressive Outlook 

Indian Government is unceasingly progressive when it comes to technology, though the country is slow in adoption, be it internet, payments, or PayPal. India has been laggard but look at UPI. Once the Government adopted UPI, it has become a massive player in the ecosystem. Similarly, the Bill is merely to release and would take time in implementation.

The News of Cryptocurrency Ban spread like a wildfire in Indian market, eventually casting the crypto community in a severe state of panic. But really, is the crypto ecosystem crushed, silenced and taken down to oblivion in the country? The answer in No. RBI has never banned cryptocurrency instead they have simply prohibited private cryptocurrencies in the country. 

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Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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