The Indian cryptocurrency landscape is going through turmoil like never before. Different sources are reporting different stances from the government on cryptocurrencies, with panic sales causing a dip in the price of Bitcoin, Ethereum, and other cryptocurrencies. Confusion heightened with sources claiming that the government has decided to ban all private cryptocurrencies. The problem lies with the definition of the term ‘private cryptocurrencies’.
According to some crypto entrepreneurs like the founder of the Indian crypto news outlet Coin Crunch, the term could encompass all existing cryptocurrencies. Since the Reserve Bank of India does not have a digital coin of its own, it would mean that crypto transactions will come to a standstill if private cryptocurrencies are banned. On the other hand, officials from the leading Indian crypto exchange WazirX believe that the term refers to privacy-focused cryptocurrencies like Monero. These anonymity-focused tokens facilitate financial and cyber crimes to a great extent. Banning them would mean a high level of security from chances of money laundering and illegal transactions. Leading Indian fintech company PayTM has also echoed the view of WazirX, saying that there is nothing to worry about for Indian crypto investors yet.
The winter session of the Indian parliament will put an end to all these speculations when the bill is finally passed. The Prime Minister of India previously had meetings with top crypto entrepreneurs in the country. For a long time, it seemed that the government wanted to encourage cryptocurrency in the country. Recent reports suggest otherwise, and Indian investors are naturally afraid of the consequences.