Former Minister of Finance Subhash Garg, the creator of the Indian Encryption Act, dismissed the concept of banning “private cryptocurrency” as a misunderstanding and emphasized the huge potential of cryptocurrency and blockchain technology.

The parliamentary discussions surrounding a controversial encryption bill raised concerns about the ban on cryptocurrencies, but did not clearly indicate the scope of the ban. As Cointelegraph reported, Indian investors panic selling Follow the announcement.in a interview Garg clarified via the local news channel News 18:

“[The description of the crypto bill] Maybe it was a mistake. It is misleading to say that private cryptocurrencies will be banned and to suggest the same to the government. “

He believes that the Indian government should formulate a bill after discussions with stakeholders and cryptocurrency investors. In addition, the bill proposes to ban private cryptocurrencies without clarifying what the term “private” means.

Therefore, the Indian crypto community self-interpreted two different versions of the bill’s agenda-one considered banning all non-government issued cryptocurrencies, and the other excluded cryptocurrencies running on public blockchains, such as Bitcoin (Bitcoin) And Ethereum (Ethereum).

After highlighting the huge ecosystem driven by disruptive technologies, Garg also pointed out the shortcomings of classifying cryptocurrencies as assets. He also stated that the benefits of crypto exchanges are limited and do not represent the entire community:

“You don’t classify the wheat you produce, nor do you classify the clothes you produce as an asset. It is too simplistic to treat it as an asset.”

Finally, Gag added that the central bank digital currency (CBDC) plan is complicated, especially in countries such as India. According to him, the government first needs to deal with challenges, including the unavailability of smartphones and the issuance of digital wallets.

related: Singapore cryptocurrency exchange enters India amid regulatory uncertainty

The Indian crypto market continues to attract international companies, the latest being Singapore’s crypto exchange Coinstore. As Cointelegraph reported, Coinstore has allocated US$20 million to set up three new offices in the region.

In an interview with Cointelegraph, a Coinstore spokesperson was hopeful about developing an active crypto regulatory framework:

“Strict KYC procedures, exchange security requirements, and gradual supervision of certain cryptocurrencies will naturally protect Indian users and will clarify the legality of certain cryptocurrencies.”