The Central government is looking to ban all private cryptocurrencies through a bill that will be introduced in the Winter Session of Parliament later this month. As per sources of Republic Media Network, only a few companies will be immune to the bill which is reportedly named "The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021". It is to be noted that reports about the possible ban have surfaced after PM Narendra Modi expressed his concerns over the growing trend of digital currency, in his address at The Sydney Dialogue on November 18, 2021.
Meanwhile, this revelation about the bill is likely to create turbulence amongst traders and even owners of crypto trading companies. In an interview with Republic Media Network on Tuesday, Nischal Shetty, CEO of cryptocurrency trading platform WazirXIndia predicted the nature of the upcoming legislation.
Although Shetty asserted that "we'll have to wait and watch", he predicted that the government might allow cryptocurrencies to exist as assets and utilities. Notably, the said anti-cryptocurrency bill is listed as 'To create a facilitative framework for the creation of the official digital currency' which will be issued by the Reserve Bank of India (RBI) itself.
When asked for his opinion on the government's decision to first regulate the cryptocurrency technology before a complete plan, Shetty said, ''The whole Central Bank digital currency is a big win in general because that allows RBGI to eventually come up with India's own digital token. But other crypto assets are not mutually exclusive...Bitcoin and everything else don't fall under cryptocurrencies, they fall under assets and utilities. So, these are very mutually exclusive things.
He further added that, "to create a national digital currency, you don't have to worry about banning an asset or utility. You can definitely ban any crypto that wants to be a currency. That has been done in a few other countries, but it does not mean a total ban on the entire technology or the entire blockchain ecosystem. Shetty reiterated that those which will be considered a currency in the crypto market will face the ban while the assets and the utilities will be granted an exemption.
Suril Desai, an expert on the subject of cryptocurrency said in an exclusive Republic interview, that banning cryptocurrency in India will make the business go underground and would create an environment similar to that in China.
Desai stated, ''It will become a China-like situation, where they tried to ban Bitcoin and everything but everyone was using VPN and alternative routes. It will be very difficult to enforce such a thing because it's a technology and also the fact that private cryptocurrencies are like private websites on the internet.
Not confident about the positive effects of the ban, Desai added that cryptocurrencies after the ban will go more underground and get slightly murkier.