India’s ex-finance minister denies plan to ban private cryptocurrencies

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TL; DR Breakdown

  • Subash Garg says there was never a plan to ban private cryptocurrencies
  • Garg said everything was a minor misunderstanding
  • India’s crypto market continues to thrive

Over the last few years, there have been moves in India to abolish crypto trading, as a few of the top echelons have noted the risks associated with them. Recently, the news went around the media citing the ban on all private cryptocurrencies by the country. If the news was right at that period, it could signal the end of all crypto activities, even though it had not been defined. However, a new update has been communicated as the ex-finance minister of India has said the previous bill had nothing to do with banning private cryptocurrencies.

Garg said the bill was misinterpreted

According to the ex-minister in question, Subash Garg, digital assets are one of the financial instruments with potential in the market. In his statement, Garg also said that the issues surrounding the ban were just down to misinterpretation on the media. With news about India’s parliament considering a crypto bill that set out to ban private cryptocurrencies, there was fear on the mind of most crypto traders in the country. The fear was heightened because the parliament failed to define the terms pushing the media and traders to conclude their own. While the news lasted, crypto traders were said to have sold most of their stakes in crypto as local crypto exchanges registered a massive sell-off across all digital assets.

India’s crypto sector continues to thrive

In his interview with a local channel station, Garg mentioned that this small issue was caused by the description of the crypto bill. He pointed that it will not be a good look if cryptocurrencies are banned. Garg said the best way forward was for the Indian government to hold a referendum with major stakeholders in the sector before coming up with a regulatory framework.

Also, Garg mentioned that since the bill cites ‘private cryptocurrencies,’ the government should endeavor to define, so the traders in the country know the way forward. Garg said that the earlier news about banning all private cryptocurrencies was met with mixed definitions. While some people believed it was an outright ban on all digital assets, others thought that the ban would not include cryptocurrencies on public blockchains. The ex-finance minister also gave his opinion about digital assets being classified as assets. In his opinion, the crypto sector cannot be represented by exchanges as they are a small part of the bigger community.

Finally, Garg mentioned that developing a CBDC will be very stressful for governments, especially in India. If they intend to make it work, they must first allow easy access to mobile devices and wallets. India continues to witness massive interest in its crypto sector. Coinstore announced that it would enter the country and set up three offices in strategic locations, according to recent news. Although everything is still subject to approval, a Coinstore spokesperson was upbeat about how their entrance will drive crypto adoption and regulatory oversight in the country.

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