Contrary to the prior reports that India is considering a bill that would effectively ban all” private” cryptocurrencies in the country, recent publications from the local media imply that the Indian government is looking to regulate the sector better instead of outright banning it. According to the Indian news publication NDTV, they had obtained details from the cabinet note currently present within the government that supports this particular notion.
Sunil Prabhu, a reporter of NDTV, states that the note they obtained contains several suggestions that India aims to regulate cryptocurrencies as “crypto-assets” with the help of the Securities and Exchange Board of India (SEBI). He notes that investors will be given a particular time frame for declaring their explicit crypto holdings and transferring them to exchanges currently governed by the SEBI. While this still suggests that private wallets would most likely be banned, it is a far cry from the previous belief that the bill seeks to ban all “private crypto.”
As reported by Coinmod last November 25, rumors regarding a particular bill within India that seeks to ban cryptos spread like wildfire prompting several investors to panic sell their holdings on the country’s top crypto exchange WazirX. This, in turn, drastically negatively impacted almost every crypto’s prices. While the bill in question did not have any specific section that tells any form of banning, its vague wording and lack of general direction left many perplexed on what it would entail. Considering that, we couldn’t blame Indian crypto holders’ decision to sell out their holdings quickly.
Nevertheless, Prabhu states that the proposed bill, as controversial as it has become, is India’s latest push to combat further terrorism financing and money laundering schemes facilitated through cryptocurrencies.